Reasons to Consider when Selecting Dedicated Servers vs VPS Hosting

blog Thursday, June 27, 2024

As an Infrastructure-as-a-Service (IaaS) provider, Worldstream does not offer VPS hosting itself. We’re familiar though with virtual private server installations. The most robust dedicated servers from Worldstream are particularly popular for VPS hosting deployments, by end users and hosting resellers such as MSPs and system integrators alike. In this blog article, we will go over some key factors to think about when making a choice between dedicated servers and VPSs.

Reasons to Consider Dedicated Servers over VPS Hosting

For an SMB or an individual user with a website or other type of small web application and a limited budget, choosing the right type of hosting infrastructure doesn’t have to be that difficult. Many times, shared infrastructure will do. Unless, for example, the SMB is a promising startup company, or an ecommerce provider, or a SaaS (Software-as-a-Service) provider with high growth potential, to name a few examples. Such companies might consider going straight for a heavier hosting solution, where they might end up with a VPS or a dedicated server. The question is what factors influence the choice of either a VPS hosting solution or a dedicated server, for both SMBs and larger companies.

An important factor to consider when it comes to choosing VPS hosting or a dedicated server is the required performance of the hosting solution. The ‘noisy neighbor’ principle in VPS technology may sometimes cause degraded or less stable performance. Heavy applications typically require the most robust hosting solution, which is when a dedicated server may quickly come into the picture.

High traffic volume and high bandwidth needs may also underline the choice of a dedicated server, as this hosting solution is able to provide the very best server and network performance. On the other hand, virtual private servers are able to easily handle fluctuating traffic volumes, while required scalability with dedicated servers can create a bit more complexity.

Required Security Levels and Server Knowledge

The security aspect can play a role as well when it comes to choosing between VPS and a dedicated server. Solid VPS infrastructure usually provides a secure environment for (web) applications. However, a VPS may be more vulnerable than a dedicated server because it divides a physical server into numerous virtual servers using a hypervisor like Xen, KVM, VMware ESXi, or Microsoft Hyper-V. The hypervisor is responsible for allocating physical resources, including CPU, RAM memory and storage to the various VPSs installed on a physical server. There is a small risk here that such a hypervisor will be infected. A dedicated server is capable of offering the very highest security because no hypervisor is used, but also because fully customized and fitting security measures can be taken on a dedicated server.

The hosting knowledge present in a company can also play a part in the choice of VPS versus a dedicated server. Managing virtual private server solutions generally calls for less expertise than a dedicated server. Managing a VPS is just simpler and requires only a moderate level of understanding of hosting technology. Many of the deep technical aspects with a VPS are already taken care of by the hosting provider. For example, you don’t have to worry about server updates and patches with a VPS because the underlying hardware infrastructure with a VPS is the responsibility of the hosting provider.

Cost Efficiency - Worldstream & Appsignal

Cost can also be a consideration in choosing one or the other hosting solution. On a single physical server, multiple virtual servers can be installed. Thanks to this shared underlying hardware infrastructure, a VPS typically has lower setup, maintenance, and management costs. Dedicated servers tend to be a bit pricier. On the other hand, at Worldstream we’ve seen enough examples of situations where choosing dedicated servers turns out to be more cost efficient than VPS.

Worldstream offers a number of dedicated server configurations that are price competitive with VPSs. It shows that a dedicated server does not necessarily have to be more expensive than a VPS. At the same time, we see customers who end up spending less money with dedicated servers for various reasons.

A good example of this is the cooperation between Worldstream and Appsignal, a softwaresupplier delivering real-time monitoring for application health and performance, who is able to realize cost efficiencies thanks to the use of dedicated servers. Previously, Appsignal used multiple VPS providers, but they were hampered by the ‘noisy neighbor’ principle resulting in fluctuating performance and a lot of engineering work that followed. With their dedicated servers at Worldstream, Appsignal’s engineers now spend much less time troubleshooting while they can focus on continued development of the monitoring software. According to Appsignal, the costs were the same when switching to dedicated servers at Worldstream, with significant cost savings being achieved along the way. The full Appsignal client case study can be found here.

Executive Summary

When choosing between dedicated servers and VPS hosting, there are several factors to consider. Shared infrastructure will often do for SMBs and individual users on a tight budget. More robust options like VPS or dedicated servers might be required for companies with strong development potential, such as startups or ecommerce suppliers.

Performance can be a crucial point of consideration. Dedicated servers provide superior performance and stability, while VPS solutions may experience the ‘noisy neighbor’ performance effect. For optimum performance, dedicated servers are frequently needed for high traffic volumes and bandwidth requirements.

Another crucial component of the VPS vs dedicated server consideration is its security. Although VPS infrastructure often provides acceptable security levels, the shared hypervisor may make it more susceptible. In contrast, dedicated servers are capable of providing the maximum level of security due to their high customization characteristics.

Technical administration and the server knowledge available also represents a factor to consider. As a VPS provider handles many of the technical tasks, managing a VPS takes less experience than a dedicated server. For dedicated servers, more customisation and technical know-how are needed. To conclude, the decision between VPS and dedicated servers is based on individual requirements related to cost, expertise, security, and performance.

Dedicated Servers Worldstream

At Worldstream, we do not provide VPS hosting solutions, but we do provide dedicated servers - both in standardized options and fully customized configurations. Worldstream provides dedicated servers at a cost that rivals that of VPS, while some clients even achieve better cost efficiency results with dedicated servers. Many of our server configurations are suitable for deploying VPS hosting solutions, which several of our MSP customers internationally actually do. Our engineering support can of course always provide you with advice, should you have specific questions about this.

Worldstream offers dedicated servers in two varieties: fully customizable servers and fixed instant delivery server setups. We currently have more than 15,000 dedicated servers installed for our clients in Worldstream’s data centers. These dedicated servers are backed by Worldstream’s proprietary global network. Every dedicated server includes 40 Gbit/s anti-DDoS, which is also upgradeable. Due to the maximum bandwidth consumption of only 45% on Worldstream's netwerk, server users have optimal scalability and DDoS defense guarantees.

This is a three-part article about dedicated servers versus VPS. Visit our website next week for the following section, where we dive into when you should switch from VPS to dedicated servers.

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