Dedicated Servers vs VPS: A Buyer’s Guide to Web Hosting Solutions

The business community is divided on whether they prefer dedicated servers or VPS for their hosting needs. In terms of market share, dedicated servers make up 27.90% of the global web hosting market. VPS, meanwhile, is steadily rising in popularity, accounting for 13.60% of the web hosting market¹. 

Some companies swear by VPS’s performance, while others place their trust in dedicated servers. With so many varied opinions on the subject, finding a proper answer for what you should be using can be troublesome. 

The honest answer is that both hosting technologies are incredibly robust at what they do. There are hundreds of dedicated server and VPS services, all providing a wide spectrum of service quality. 

While these factors certainly make it difficult to provide the right answer, there are ways to find the right answer for you. In this blog, we have reviewed the dedicated server vs VPS comparison regarding various user needs. Let’s get into it and more right away.

Performance

Performance is at the forefront of most business technology decisions. With how much competition there is in the market, businesses have to focus on building a quality experience for users. As such, your choice in the dedicated server vs VPS debate heavily depends on the level of performance you need. 

Both services are very robust in terms of performance. You might often hear people in the community speak of dedicated servers being faster, but this is only true in some cases. Performance depends entirely on the resources, infrastructure, and hardware in use. 

Since dedicated servers offer the entire resource pool, they often perform better but also cost more for the performance. Performance evens out when comparing based on the price-to-performance ratio.

If your website or application is very resource-intensive, a dedicated server could be the better choice to have full control over resource allocation. If your workload is relatively light and you feel a VPS resource pool will suffice, choose a VPS. 

The best way to discern which is right for your use is to try both via free service trials. Whichever better suits your desired performance outcomes gets a point in their favor. 

Scalability

Scalability is another major factor you must research when deciding between the two. While performance was a tricky subject with no clear answer, scalability is the opposite. In most cases, VPS hosting will be the better choice regarding scalability and flexibility. 

All a VPS needs to scale is added resource allocation into the SLA. The provider can instantly spin a VM, and you can scale precisely as needed to accommodate growth. Similarly, the new resources can be decommissioned once things settle down for cost savings. 

Dedicated servers are much more difficult to manage for scalability. You can either build or lease a whole new server for horizontal scaling or upgrade the current one for vertical scaling. In either case, significant time and money will be needed to achieve desired outcomes. 

The decision relies on one major factor: predictability. Businesses with predictable growth and traffic do not need to worry about the downsides of dedicated server scaling. For businesses with unpredictable traffic, having a VPS can dynamically upscale and downsize can be a lifesaver.

Security

Security is where many take the side of dedicated servers over VPS. Despite being highly secure and isolated, VMs still rely on shared physical infrastructure and hardware. They introduce additional threat vectors that are simply absent from dedicated servers. 

VM escape attacks are foremost among such vulnerabilities. In 2022, Cisco identified such a breach in its network. The bug (CVE-2022-20777) ranked 9.9 on the CVSS vulnerability severity scale and could completely take over the host OS via the hypervisor². A similar case was reported at the 2022 Geekpwn Event, where Ant Security researcher Yuhao Jiang demonstrated the CVE-2022-31705 vulnerability³. 

These are just a few examples of how VPS remains a security risk despite the advertised security assurances. Aside from malicious attacks, VPS is only as secure as the host security configurations. Any mistakes from the provider can lead to security breaches that are out of your control. 

Dedicated servers give you peace of mind regarding security. While configuring requires more effort, you directly influence all network and web security layers. You can rest assured knowing you have done your best to stop all threats. 

If security is a priority for you, dedicated servers are the right choice. Even if they are more expensive, they can prevent damage to your company’s reputation and bottom line. A fair price to pay for the promise of security. 

Customizability

Another point of contention for many is the level of customization and configuration provided. This is again a factor where dedicated servers outshine VPS. While VPS offers quite a high level of customization, they lack the potential of dedicated servers. With a dedicated server, you can tweak every aspect of the machine, right down to the last byte of storage available. There is unrivaled room for optimization. Comparatively, a VPS is limited by the host OS. While you can craft an environment very close to your ideal, there will always be server and host-level settings you cannot control. 

Configuration and direct control also play into the security aspect of the discussion. With dedicated servers, you can directly customize your security. VPS does not offer the access needed to enforce the most robust security configurations. 

When weighing this factor, you should consider your current customization demands and future prospects. The goal is to choose a service that is not just right for your business at the moment but also offers long-term gains and sustainability. 

Pricing

Price often gets brought up in these comparisons, but it is a very tricky factor to evaluate. Generally speaking, VPS is known to be cheaper than dedicated servers due to its virtual nature. Like performance, however, this is not a definitive statement. While it is true that cloud and shared resources like VPS are cheaper, many examples of VPS services cost far more than dedicated server counterparts.

Instead of getting hung up on pricing alone and searching for a bargain, we recommend using price as a reference point for the other factors we have discussed. For example, you look at the price of a VPS and then evaluate how it ranks in terms of performance, scalability, security, etc. 

You can look up average market costs and research the price of hardware components. This can give you a solid idea of what your ideal infrastructure should cost. You can design your budget based on this research or base this research within the confines of your budget. 

Whichever way you choose, the end goal is to be able to answer the question: Does the service and its features justify the price? 

Remember to beware of offers that appear too good to be true. Some service providers engage in shady practices to deliver the lowest rates. Others also include hidden fees in their SLAs that can knock you out of budget. Each provider you assess should be carefully vetted to side-step these common pitfalls.

Here’s a summary of what you can expect when shopping for dedicated servers and VPS solutions:

Conclusion

This checklist should prove reliable for determining which hosting solution is best for your needs. Unfortunately, there is no way to be more specific or exact about your choice. Many of these factors depend on unpredictable factors like market trends and service quality. 

Nevertheless, you should be able to determine what solution best fits your needs with this framework. We highly recommend going the extra mile and researching solutions in the context of your unique industry-specific needs. 

If dedicated servers end up ticking all of your boxes, then RedSwitches may have some great offers for you. RedSwitches dedicated server hosting services strike the perfect balance between performance and price. 

FAQs

Q. What is the main difference between a dedicated server and a VPS?

A dedicated server provides full access to all hardware resources for one user. A VPS shares resources with other users while maintaining isolated environments for each.

Q. Which hosting option offers better performance?

Dedicated servers generally offer superior performance because they do not share resources. However, VPS can also deliver strong performance if your workload is not resource-intensive.

Q. How do scalability options compare between dedicated servers and VPS?

VPS offers better scalability. Resources can be dynamically increased or decreased as needed. Dedicated servers require manual upgrades and may take more time and effort.

Q. Which is more secure: a dedicated server or a VPS?

Dedicated servers are more secure because they do not share hardware with other users. VPS, while secure, introduces additional vulnerabilities due to shared infrastructure.

Q. Can I customize my server environment more with a dedicated server or a VPS?

Dedicated servers offer more customization and control. You can modify hardware and software configurations freely. VPS has some limitations due to the shared host environment.

Q. Which is more cost-effective: a dedicated server or a VPS?

VPS is generally more affordable, especially for smaller businesses. Dedicated servers are more expensive but offer exclusive resource use and higher performance for intensive applications.

Q. What are the downsides of using a VPS for hosting?

The main downside of VPS is the shared environment, which may lead to performance variations and increased security risks compared to dedicated servers.

Q. Which option is better for handling unpredictable traffic spikes?

VPS is more flexible for handling unpredictable traffic spikes as it allows instant resource allocation. Dedicated servers require more planning and resources to scale.

Q. How do security threats differ between dedicated servers and VPS?

VPS may face vulnerabilities like VM escape attacks due to shared infrastructure. Dedicated servers avoid this risk by providing exclusive hardware, which reduces external attack vectors.

Q. What should I consider when deciding between a dedicated server and a VPS?

Consider your performance, scalability, security, customization, and budget needs. A dedicated server is better for high performance and security, while VPS is ideal for flexibility and cost-efficiency.

References

1: Cybernews, Web Hosting Market Share Analysis, 2024

2: Dark Reading, Critical Cisco VM-Escape Bug Threatens Host Takeover, 2024

3: Security Week, 2022