Although the end product of both VPS and Cloud Hosting may seem similar, the functions, practices, and operations of these modes are very different. Sure, both ultimately provide a similar hosted solution; however, the way in which they work radically changes the final product.
VPS, or Virtual Private Server, refers to a web hosting plan in which the virtual server appears to users as a dedicated server, but is installed on a computer that serves numerous websites. As such, the physical server hardware is shared. That being said, VPS does not use a computer as a server. Instead, VPS works as software within a user’s personal computer and functions like a separate computer dedicated to each individual’s specific IT needs. In doing so, VPS acts as a middle ground between shared hosting (which has lower costs) and a dedicated server (which allows for complete control). In utilizing this mode, users are allotted in full configuration, customization, and administration as they would with a dedicated server; however, they do not have to pay for a dedicated server. Instead, the server is divided (virtually) into pieces, which still maintain the same functionality. This means that each user that utilizes VPS Hosting is assigned a specific piece of the system’s resources, which they then tailor to their needs.