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VPS vs VDS vs dedicated server: the difference and how to choose

In short

VPS and VDS mean the same thing today: a virtual server with its own OS and root access on a shared physical machine. Historically, VPS meant containers (OpenVZ) and VDS meant full virtualization, but almost everyone now uses KVM and the names became synonyms. A dedicated server is a whole physical machine: you need it when even a large VPS is not enough or the task requires special hardware.

Key takeaways
  • VPS (Virtual Private Server) and VDS (Virtual Dedicated Server) mean the same thing today - a virtual machine with its own OS and root access on a shared physical server, almost always using KVM virtualization.
  • Historically, VPS meant OpenVZ containers without their own kernel and VDS meant full Xen or KVM virtual machines; when choosing a virtual server, the virtualization type matters, not the name.
  • A dedicated server is a whole physical machine: it is needed when even the largest VPS is not enough, the task requires special hardware such as GPUs, or the rules forbid a shared physical machine.
  • A vCPU is a host CPU thread the hypervisor assigns to a virtual machine; the VPS operating system sees as many processors as the plan has vCPUs.
  • A Tihost VPS is deployed in about 2 minutes and costs $4.00 to $77.50 a month - from 1 vCPU and 2 GB of RAM up to 16 vCPU and 32 GB.

Three kinds of hosting at a glance

  • VPS (Virtual Private Server) and VDS (Virtual Dedicated Server) - a virtual machine on a shared physical server. Your own OS, your own resources, root access.
  • Dedicated server - the entire physical machine is yours.
  • Shared hosting - space for a website on a server where you do not control the OS and share it with other customers (compared in detail in shared hosting vs VPS).

Where the two names come from

In the days of OpenVZ container virtualization, virtual servers shared the host's OS kernel: you could not install your own kernel, load a module or run Windows. Those servers were often called VPS. Full virtual machines (Xen, then KVM) with their own kernel were sold as VDS - a "virtual dedicated" server. Almost every host now uses KVM, and both terms mean the same thing. Look at the virtualization type, not the name.

Tihost VPSes are KVM virtual machines: their own kernel, Docker, WireGuard, kernel modules, Windows Server.

Comparison

VPS / VDSDedicated serverShared hosting
What you getA virtual machineA physical serverSpace for a website
Root access and own OSYesYesNo
Isolation from neighboursHypervisorFullShared OS
Setup timeMinutesHours or daysMinutes
Changing the configurationMove to another planHardware swapChange plan
PriceFrom $4.00 a monthUsually tens of dollars and upThe lowest
Used forBots, websites, APIs, VPN, CI, databasesLarge databases, special hardwareSimple websites
VPS price - Tihost plans; dedicated and shared hosting prices depend on the provider.

What a vCPU is

A vCPU is a host CPU thread the hypervisor assigns to your machine. The server OS sees as many processors as the plan has vCPUs. Performance depends on the host CPU: at Tihost it is the AMD Ryzen 9 5950X and 9950X, with the high per-core clock that matters for bots, databases and websites. Server load is visible in the panel and in the bot. Other terms - hypervisor, NVMe, root - are explained in the VPS glossary.

When a VPS is enough

  • Telegram bots and scrapers - see how to run a bot on a VPS.
  • Websites, online stores, APIs and mobile app backends.
  • Your own VPN, proxy, or game servers for friends.
  • CI/CD, test environments, Docker containers.
  • Mid-size databases - the largest Tihost configuration offers 16 vCPU and 32 GB of RAM.

When you need a dedicated server

  • The task consistently outgrows the largest VPS configuration.
  • You need special hardware: GPUs, many disks, hundreds of gigabytes of RAM.
  • A regulator or client explicitly forbids a shared physical machine.

Otherwise a VPS is simpler: it is deployed in about 2 minutes, billed monthly with no long contract, and OS reinstall, console and reboot are available from the panel and the Telegram bot.

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FAQ

Are VPS and VDS the same thing?

Today VPS and VDS are the same thing: at most hosts both names mean a KVM virtual machine. VPS used to often mean OpenVZ containers without their own kernel.

Which is better for a website - a VPS or shared hosting?

Shared hosting is simpler for one small PHP website. A VPS is needed for your own stack, background processes, Docker, bots, or several projects on one server.

Can I install Windows on a VPS?

Windows can be installed on a VPS with KVM virtualization. At Tihost, Windows Server is available when ordering and when reinstalling the OS.

What if a VPS is no longer enough?

When a VPS is no longer enough, move to a larger configuration - Tihost plans cost $4.00 to $77.50 a month depending on resources. If even the largest one falls short, it is time to look at a dedicated server.

What is a vCPU on a VPS?

A vCPU is a host CPU thread the hypervisor assigns to a virtual machine. The VPS operating system sees as many processors as the plan has vCPUs, and the speed of each depends on the host CPU model.