Luke Cavanagh GoDaddy recently discontinued its dedicated server hosting services and encouraged affected customers to switch from dedicated servers to virtual private servers (VPS). Many customers were left scrambling and put in a difficult situation: move to VPS or find another hosting provider.
While there are situations where VPS hosting is a suitable option, compelling customers to make the switch from dedicated servers can have several negative consequences. We’ll break them down below.
Understanding dedicated servers and VPS
A dedicated server is a type of hosting service where an entire physical server is allocated to a single customer. It provides full control over the server’s resources, such as CPU, RAM, storage, and bandwidth.
Because of this exclusivity, dedicated servers are known for their high performance, reliability, and security. They are ideal for websites or applications with high traffic, heavy resource requirements, or strict security needs.
A virtual private server (VPS) is a virtualized server created on a physical server using virtualization technology. A single physical server can host multiple VPS instances. Each VPS functions independently, with its own operating system, storage, CPU, and memory allocation.
The ramifications of GoDaddy’s decision
Recently, GoDaddy announced that all dedicated servers will be retired and migrated to virtual private servers.
With the unexpected decision to discontinue dedicated hosting services, GoDaddy has left many customers frustrated and looking for a new home for their projects. Here at Liquid Web, we know what difficulties such a decision entails and we will be happy to help you overcome these easily.
In recent years, many hosting companies have been making significant changes to their service offerings. One notable trend is the decline in popularity of dedicated servers.
There are several reasons why hosting providers have shifted away from offering dedicated servers in favor of cloud/VPS solutions, including the following:
- Cost efficiency: Companies serve more customers with less physical hardware, making VPS hosting generally more affordable than a dedicated server. Idle capacity on one VPS can be used by others, improving overall efficiency. This attracts customers who need more than shared hosting but can’t afford managed dedicated servers.
- Reduced need for physical space in data centers.
- Scalability: Resources can be easily scaled up or down based on needs, making VPS suitable for growing businesses. This allows servers to grow without needing to migrate to new hardware.
- Market demand: Many customers prefer the flexibility and scalability of cloud solutions. Increased demand for VPS has driven hosting companies to focus on this offering. Large cloud providers have set new industry standards.
In the announcement of the dedicated server hosting service suspension, GoDaddy suggested existing customers migrate to their virtual private servers. For many customers, switching from a dedicated server to a VPS is simply not possible. Below, we’ll walk through exactly why that is.
Dedicated server vs VPS: Why they’re not interchangeable
It’s important to note that while many companies have shifted focus to VPS, dedicated servers are still available and preferred for certain use cases, particularly those requiring high performance, full hardware access, or specific compliance requirements (for example, HIPAA).
While virtual private servers have become increasingly popular for web hosting and various online services, they fall short in several areas compared to dedicated hosting.
Performance differences
Raw power
Dedicated servers provide a powerhouse of performance, offering exclusive access to all server resources. This unshared environment ensures consistent speed and reliability, critical factors for businesses with high-traffic websites or resource-intensive applications.
Notably, dedicated servers offer superior performance as they provide exclusive access to all hardware resources.
In contrast, a VPS shares physical hardware with other virtual instances, potentially leading to resource contention.
Resource overcommitting and noisy neighbor effect
Since multiple virtual servers share the same physical resources (CPU, RAM, and storage), overcommitment can occur when one site experiences high traffic or resource-intensive activities. This may lead to decreased performance for all sites on the shared host.
Dedicated servers deliver more consistent performance because all the physical resources are ready and waiting to be put to use.
I/O operations
Disk and network I/O operations are typically faster on dedicated servers due to direct hardware access, whereas VPS environments often have virtualized I/O which can introduce overhead.
Virtualization limitations
Nested virtualization
Most VPS environments do not support nested virtualization, limiting your ability to run your own virtualization software or create additional virtual machines within your VPS.
Limited upgrades and customizations
While VPS provides some level of customization, it’s typically limited by the underlying hardware architecture and the provider’s policies.
Dedicated hosting, on the other hand, provides greater flexibility in terms of server configuration, hardware upgrades, and customizations. This is particularly important for businesses requiring specialized software or applications.
Isolated environment
Physical isolation
Dedicated servers provide complete physical isolation, ensuring that your data and processes are entirely separate from other customers.
VPS environments, while logically isolated, still share physical hardware.
Security concerns
With multiple virtual servers sharing the same physical host, security risks increase due to potential vulnerabilities in the shared infrastructure.
In contrast, dedicated hosting ensures that each site has its own isolated environment with better protection against external threats.
Port 25 restriction on VPS
An often overlooked but critical difference between dedicated servers and many VPS offerings is the handling of email traffic, specifically related to port 25.
Many VPS providers, including GoDaddy, restrict outbound traffic on port 25 (the default port for SMTP) as an email abuse prevention measure. This restriction has significant implications.
Email limitations:
- Direct sending of emails from your server is blocked.
- Can’t run your own mail server without additional configuration.
SMTP relay requirement:
- Providers often offer SMTP relay services as an alternative.
- All outgoing emails must pass through the provider’s relay servers.
- Limitations on email volume.
- Risk of emails being marked as spam due to shared IP reputation.
Dedicated servers vs VPS for email handling
Dedicated servers:
- Full access to port 25.
- Can run your own mail server (e.g., Postfix, Exim).
- Complete control over email infrastructure and policies.
- Ability to manage your own IP reputation for email.
VPS with Port 25 restricted
- Reliance on the provider’s SMTP relay.
- Limited control over the email sending process.
- Potential for shared IP reputation issues.
- May require additional costs for higher email volumes.
Understanding these email-related limitations is crucial when evaluating a switch from a dedicated server to a VPS, especially for businesses heavily reliant on email communications or those running mail-intensive applications.
Advantages of dedicated servers compared to VPS
For applications demanding the highest levels of performance, customization, and isolation, dedicated servers remain the superior choice. Below, we break down a few of the advantages of dedicated vs VPS.
Resource allocation and performance
One of the most significant differences between dedicated servers and VPS is the allocation of resources. A dedicated server provides a customer with exclusive access to all the hardware resources, such as CPU, RAM, and storage.
This means that the server’s performance is entirely predictable, and there is no risk of “noisy neighbors” affecting the performance of the hosted applications.
Dedicated servers provide:
- Full access to physical hardware resources (CPU, RAM, storage).
- No resource contention with other users.
- Consistent performance regardless of other customers’ activities.
- Impact on applications running on the server.
- Lower latency for database operations and API calls.
- Higher throughput for I/O intensive tasks.
- Ability to handle traffic spikes without throttling.
Dedicated servers provide raw, unshared computing power. Unlike VPS environments where resources are divided among multiple users, a dedicated server allocates all its CPU, RAM, and storage exclusively to your applications.
This translates to:
- Faster processing speeds for compute-intensive tasks.
- Quicker response times for database queries.
- Improved handling of traffic spikes without performance degradation.
The absence of resource contention means your applications run at peak efficiency, delivering a smoother user experience.
Security and isolation
For businesses that prioritize security, such as financial institutions, healthcare organizations, or ecommerce companies, the potential risks associated with shared environments make dedicated servers a safer option.
Dedicated servers enhance security through:
- Physical isolation of hardware.
- No shared hypervisor layer.
- Full control over network configuration.
With a dedicated server, you gain full control over your security measures. This level of security proves crucial for businesses handling sensitive data or requiring compliance with stringent regulations.
Reliability and hardware management
Dedicated servers typically offer better uptime and reliability compared to VPS solutions:
- No noisy neighbor effect: Other users’ activities cannot impact your server’s performance.
- Direct hardware monitoring capabilities and real-time monitoring of hardware health (temperatures, fan speeds, etc.).
- No single point of failure from a shared hypervisor.
- Hardware RAID and redundant power supplies, plus the ability to hot-swap failed components in some configurations.
These factors combine to ensure your critical applications remain online and performant.
Scalability options
While VPS solutions offer vertical scalability (adding more resources to your virtual machine), dedicated servers provide both vertical and horizontal scalability options:
- Vertical scaling through hardware upgrades.
- Horizontal scaling by adding more physical servers.
- Flexibility to create custom high-availability server clusters with shared storage.
- Implement complex architectures that may not be possible within VPS constraints.
This scalability ensures your hosting solution can grow alongside your business needs.
Customization and control
Dedicated servers provide complete control over the server environment, allowing customers to customize the hardware and software according to their specific needs.
This level of control is crucial for companies that require specialized configurations, use legacy systems, or need to optimize their environment for specific applications.
With dedicated servers, you can:
- Allow bare-metal access to hardware.
- Install custom or legacy software incompatible with virtualization.
- Choose any compatible operating system.
Dedicated servers offer unmatched flexibility in terms of hardware and software configuration. This customization allows you to create an environment perfectly tailored to your applications’ demands.
GoDaddy is leaving their customers with limited options
While VPS hosting offers several benefits, such as cost savings and scalability, it is not a one-size-fits-all solution.
Forcing customers to switch from dedicated servers to VPS can have numerous negative consequences, including performance limitations, security concerns, misalignment of cost and value, and reduced customization.
By discontinuing dedicated server hosting, GoDaddy leaves customers to build a strategy from two options:
- Move to more expensive VPS plans that meet their current and future needs. In most cases, VPS simply cannot be a valid alternative to a dedicated server due to its limitations.
- Seek out a new hosting provider that still offers dedicated server services. If you’re looking for unbeatable performance, enhanced security, and complete control over your hosting environment, a fully managed dedicated server is the perfect solution for you. Enjoy full access to all hardware resources without the limitations of shared environments. Protect your sensitive data with a dedicated, isolated server that’s not shared with other users. Maintain high availability and ensure your applications are always up and running. Liquid Web offers a wide range of different dedicated server configurations that can meet your needs.
Elevate your hosting experience with Liquid Web dedicated servers
Ready to take your online presence to the next level? Choose our managed dedicated servers for unparalleled performance, security, and control. Our dedicated servers offer a robust solution tailored to meet the demands of your business.
Why choose our dedicated servers?
- DDoS Protection: Keep your website secure from cyber threats with our built-in DDoS protection.
- Content delivery network (CDN): Improve your website’s speed and deliver a seamless user experience worldwide.
- Intuitive control panels: Easily manage your server and applications with user-friendly control panels.
- IPMI access: Enjoy out-of-band management with IPMI access for complete remote server control.
- High-performance SSD storage: Experience faster data access and enhanced performance with our business-grade SSD storage.
- Full root access: Gain complete control over your server environment with unrestricted root access.
Don’t settle for less. Upgrade to our dedicated servers today and experience superior performance and reliability.
For a limited time, we’re offering 50% off 3 months of dedicated server hosting for GoDaddy customers.