VSP vs VPN

[Updated October 2024]

Although the acronym VPS seems similar to VPN, do not confuse the two, as these are different IT services. Allow me to explain …

VPS vs VPN: an overview

A VPS and a VPN are two very different technologies: A VPS (virtual private server) is a type of computer server that enables people to build websites and applications, whereas a VPN (virtual private network) is a digital tool that provides private, secure access to the internet.

VPSVPN
Who uses it?Website owners, app and web developers, etc.Business and individual
What is it?A virtualized serverA virtualized private WiFi network
When is it used?When small to moderately-large websites need speed and securityWhen business need to provide limited access to digital files and when people want to browse the internet privately
Where is it used?AnywhereAnywhere
Why is it awesome?A VPS is a more robust solution than public hosting, but not as expensive as dedicated server hosting.A VPN keeps online activity private. It can also help bypass censorship and avoid geographic discrimination.
How does it work?Software is installed on a physical server to spawn multiple virtual servers, each with private, dedicated resources.A VPN creates a secure, private connection between the user’s device and the internet.

What is a VPS?

A virtual private server (VPS) is a type of dedicated hosting environment that is virtualized and resides within a server shared with other users. 

Decades ago, this server was always a physical computer that you or your company would own and manage. However, it became simpler and more economical to outsource these servers and rent them from an internet hosting provider. This provider is responsible for managing the hardware of the computer, and you can just install the software that you want on it (like a website).

As computers became more and more powerful, it was no longer practical to rent an entire server to one user who only needed to run a single website. In most cases, for both business and personal use, it was also not practical to buy an entire server.

As a result, virtualization technologies were introduced and the virtual private server (VPS) was born.

How a VPS works

Specialized software, called a hypervisor, is installed on a physical server to add a layer of virtualization on top of the hardware. This enables hosting providers to create multiple, distinct virtual servers from the resources on one physical machine.

Each virtual, private server (VPS) is resourced with a defined set of computing resources. Even though there are several VPS on one physical server, they act like separate servers—providing users with root access, unaffected by the fluctuations of a neighboring VPS, etc.

When a user rents a VPS from a hosting provider, they can choose what size server they need, customize and configure it, and manage it like a private server. Many hosting providers also provide technical support, up to fully managed VPS services—wherein the hosting company takes over complete server management.

Benefits of VPS hosting

Get a small virtual server. If you need to host a small website, a server with 2 CPU cores and 2 GB of RAM should be plenty, but you will not find a physical server this small.

Scale easily. As your website grows, you may want to make your VPS more powerful. This is straightforward and quick, without needing to reinstall and reconfigure the whole server.

Start with an affordable investment. In a VPS arrangement you only pay for the resources you use, so it’s a great way to benefit from a private server without buying a physical server.

Graduate from shared hosting. VPS hosting is a step up from shared hosting in security, performance, speed, and flexibility.

Use cases for VPS hosting

VPS hosting is a great solution for small to moderately large organizations that need more than public hosting, but aren’t ready to invest in a dedicated server. VPS hosting is great for a wide variety of uses including:

  • Smaller, personal gaming servers
  • Hosting a growing website or application
  • Hosting a moderate ecommerce website that needs good performance and security
  • Keeping email and messaging private
  • Self-hosting a project management suite

Ready to get started? Liquid Web’s VPS hosting services deliver unbeatable performance with the fastest speeds available, expert 24/7 support, and fully managed options

What is a VPN?

A virtual private network (VPN) creates a bridge over the internet to connect users to resources securely. It keeps the connections private by encrypting them, so data that is sent from one office to another cannot be read by outsiders.

How a VPN works

1. Connection: A user’s device connects to a remote VPN server. This server can be located anywhere in the world, and the user can choose which one to connect to.

2. Encryption: Once connected, the VPN encrypts all the data that is sent between the user’s device and the VPN server. This means internet traffic is scrambled and unreadable to anyone trying to intercept it.

3. Routing: After encryption, the VPN routes internet traffic through the VPN server. This makes it look as though the user’s device is accessing the internet from the server’s location, not the user’s actual location.

4. Masking: The VPN server assigns a new IP address to the user and masks the real one. This prevents websites and online services from tracking your location or identifying you based on your IP.

5. Accessing: Once the data reaches the VPN server, it is decrypted and sent to its destination, like a website or service. The response from that website is sent back to the VPN server, encrypted again, and then transmitted back to the user’s device, where it is decrypted.

VPN benefits and use cases for business

Businesses often use a VPN to keep some files, data, and information online and accessible to remote employees—but private from the rest of the internet.

Before team members worked from home, it was easy to keep company documents and data securely in the office, but that’s not an effective solution anymore. Businesses set up a VPN that creates that secure bridge to sensitive information. Employees off-site log into the VPN in order to access those files.

VPN benefits and use cases for individuals

Privacy on public WiFi. The owner of a public WiFi network can see the websites that users on their network visit. The content of those sites is usually blocked by HTTPS, but the domains are visible. If users connect through a VPN, however, the network owner only sees the VPN.

Bypassing censorship. Some websites behave differently depending where users are geographically located. For example, Netflix may have a movie that is available to the North American audience, but not to Europeans. If you are in Europe, you can connect to a VPN that is located in the USA, and Netflix will work as if you were in the USA.

Avoiding price discrimination. Similar to content censorship, some websites charge different prices based on where they believe users are located. A VPN may enable users to get lower prices on flights and hotels.

Dodging retargeting ads. Personalized and retargeting ads can also be avoided by connecting through a VPN. Advertising networks no longer see your IP address, just the VPN.

How to get started with VPS hosting

If you’re a website or business owner, or developing or managing an online application, a good VPS hosting service can have a huge impact on your success.

If you’re currently using a shared hosting arrangement, you may have noticed that performance fluctuates. You might even have some security concerns. VPS hosting is the next step up, because it provides dramatically improved performance, security, and speed for your website.

If you’re already using VPS hosting, but you’re not satisfied with the performance or the support from your provider, it’s okay to shop around. All hosting providers are not equal.

Liquid Web has been providing VPS hosting for almost three decades. Our guaranteed uptime is unbeatable, our services are lightning fast, and our customer support is legendary. We’ll even help you migrate your site, so you don’t have to worry about downtime or the headache of the IT. Explore our most popular VPS packages now.

The best VPS hosting options

WordPress VPS hosting

The fastest WordPress hosting available, with customized plans for WooCommerce VPS as well.

Managed VPS hosting

Fully managed VPS hosting optimizes your performance and your peace of mind. Let us take care of the hosting IT so you can focus on other things.

Cloud VPS hosting

Flexible, instant cloud hosting that can be scaled up or down to meet your needs. Pay incrementally and enjoy 100% uptime guarantees.

Jerry Vasquez has led teams from 60+ cooks and chefs to 16 networking engineers. He brought those years of experience to his role as Product Manager at Liquid Web, focusing on networking and security products. When not working or sleeping, Jerry can usually be found eating and having a good conversation with good people.

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