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VPS vs. VPN: what’s the difference

April 2, 2024   . 6 minutes Read
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Virtual private servers (VPS) and virtual private networks (VPN) are two popular technologies that utilize the power of virtualization. At first glance, their similar names may create confusion regarding their actual functions and purposes. However, VPS and VPN solve very different problems for users. 

This comprehensive guide examines what each one does, key benefits, downsides, VPS and VPN differences, and ideal use cases to understand which technology may suit specific needs.

What is a Virtual Private Server (VPS)?

A VPS utilizes hypervisor software to transform physical servers into multiple isolated virtual private servers. Users get dedicated operating systems, storage, RAM, and other resources allotted from the underlying host hardware to individual VPS instances created. 

It facilitates scalability and customization capabilities similar to dedicated hosting but at lower costs due to the efficient sharing of physical resources between virtual machines.

VPS plans to provide full control to install preferred applications, services, and software configurations similar to dedicated servers. The independent virtual environment also prevents noisy neighbors in shared hosting from affecting website performance since no single site can overload server resources. 

Function and Use Cases

A VPS also provides many benefits of dedicated hosting regarding flexibility, customization, and control over the server infrastructure but at a much lower cost. It serves as an intermediate between shared and dedicated hosting. Common VPS use cases include:

  • Hosting complex web apps and sites
  • Running resource-intensive Software
  • Frequently updated sites requiring maximum uptime
  • Hosting websites built on popular CMS platforms like WordPress
  • Launching Software as a Service (SaaS) products
  • Compliance with regulatory data privacy standards

Benefits of Using VPS Hosting

  • Cost savings over dedicated servers with flexible pricing tiers
  • Scalability to add more disk space, bandwidth, and RAM as site traffic grows
  • Customization of server OS, Software, and apps as needed
  • Better stability, speed, and uptime for sites
  • Full root access for server administration
  • Increased privacy and dedicated resources to prevent attacks

Potential Downsides to Consider

  • Not as powerful as dedicated servers in terms of raw computing capability and resources
  • Higher technical competence is needed to manage server
  • Lacks physical server component redundancy for maximum uptime
  • More expensive than basic shared hosting packages

Why Use A Virtual Private Server (VPS)?

A VPS provides greater privacy, security, performance, and flexibility compared to shared hosting. It gives exclusive control over a virtual server to run web applications smoothly.

Unlike shared hosting, where sites compete for common resources, a VPS prevents overload by dedicating RAM, storage, and bandwidth. This handles traffic surges easily for complex, high-traffic sites needing scalability.

The independent virtual environment also enhances security and compliance by isolating sites at the software level. The increased privacy reduces attack surfaces.

When evaluating VPS or VPN, the main consideration is that VPS replaces physical servers, whereas VPNs augment security over existing networks transparently without requiring underlying infrastructure changes.

What is a Virtual Private Network (VPN)?

A VPN extends customization connections securely over a public intermediary network like the Internet. It establishes encrypted tunnels to relay traffic anonymously between user devices and the VPN server before routing it to final destinations using additional transport layer security protocols. 

By assigning temporary IP addresses and encrypting data, VPNs significantly enhance privacy and security for transmitting sensitive data over public networks.

Primary Function and Use Cases

The core purpose of a VPN lies in providing online privacy, anonymity, and security through encryption technologies. Individual Internet users utilize VPN services to:

  • Browse the web or access online accounts securely from public Wi-Fi
  • Bypass internet censorship, content geo-blocks in restrictive regions
  • Prevent snooping on communication and web activity by ISPs, Wi-Fi utilisers
  • Maintain anonymity by masking user location and usage patterns
  • Access geo-restricted content only available in certain countries

Benefits of Using VPN Technology

  • Encrypts data traffic to protect against man-in-the-middle attacks
  • Conceals browsing history, location, and internet usage
  • Provides connectivity for remote employees to access the corporate network
  • Avoids online price discrimination based on geography
  • Bypass government censorship and access restricted sites

Potential Downsides to Consider

  • Connection speeds may be slower compared to direct ISP network
  • Setting up one’s own VPN infrastructure requires technical skills
  • Free or cheap VPN services are more likely to log user activity
  • Public Wi-Fi operators can still see VPN traffic entering and exiting
  • No protection from malware 

Why Use A Virtual Private Network (VPN)?

A VPN boosts browsing privacy, security, and access flexibility significantly through various mechanisms.

By encrypting traffic and masking the original IP address behind intermediary servers, VPNs prevent ISPs, hackers, and advertisers from easily tracking online activity. This allows bypassing geography-based restrictions to access content only available in specific countries.

Connecting to public Wi-Fi without a VPN risks exposing sensitive data to snooping. But VPNs prevent this by building secure tunnels for communication over any network.

Difference Between VPS and VPN

Here are some key differences between VPS and VPN

Purpose and Primary Usage

The core functionality difference stems from VPS providing scalable and customizable hosting for delivering web apps and sites. 

VPNs serve to uphold data security and privacy for transmissions over public internet infrastructure lacking inherent encryption. VPS replaces physical servers, whereas VPNs have customizability over existing networks transparently.

Infrastructure and Working

VPS divides single server hardware into isolated virtual containers using hypervisors. Independent OS and a dedicated slice of resources power each virtual machine, mimicking real servers. 

VPN provides a layer of encryption within network data packets for secure tunneling through public internet lines and infrastructure before reaching the destination.

Performance and Speed

VPS performance depends on allocated RAM, storage, and computing capacity relative to app needs. More resources result in faster data processing and page loads akin to dedicated servers. 

VPN transmission speeds get impacted due to the added latency of encrypted VPN tunneling before exiting to public networks, making them traditionally slower than direct connections.

When evaluating “Is VPS better than VPN?” Well, it depends on the specific use case. VPNs are better for securing internet connections and traffic over public networks. However, VPS provides exclusive server resources for hosting websites and applications smoothly.

Conclusion

VPS Hosting and VPN solutions leverage virtualization technologies but serve very different primary purposes in terms of web hosting and internet security, respectively. 

Considering the use cases of VPS vs VPN allows for matching the right solution to specific problems. Their visualization and cons should align with organizational priorities and budgets.

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