VPS Hosting vs Cloud Hosting: What to Choose and What’s the Difference?

Cloud computing, virtual private servers (VPS), and virtual dedicated servers (VDS) are all types of virtualization that allow businesses to access computing resources without the need for physical servers. However, there are significant differences between these solutions.

Cloud computing offers the most flexibility and scalability, as it allows businesses to access a pool of resources that can be easily adjusted to meet their needs. VPS and VDS, on the other hand, provide virtual environments with dedicated CPU time, disk space, and RAM, but all the computing power and RAM is evenly distributed among all users. This makes VPS and VDS suitable for light loads, but not as effective for more complex tasks.

When considering which virtualization solution is best for your business, it’s important to consider factors such as scalability, flexibility, and cost. Cloud computing may be more expensive upfront, but it can provide greater cost savings in the long run due to its ability to scale and the pay-as-you-go pricing model. VPS and VDS may be a more cost-effective option for businesses with lighter workloads, but they may not offer the same level of flexibility and scalability as cloud computing.

VPS | VDS-hosting

Virtual Private Servers (VPS) are dedicated virtual servers with their own operating system, allocated RAM, processing power, and disk capacity. They are created using a hypervisor, which is software that allows you to share the resources of a physical server among several virtual ones. VPS users can install and customize any software on their virtual server, and it can also be used as a platform for hosting websites. While clients are isolated from each other and cannot access each other’s data, the computing resources and RAM are shared among all clients. This can result in slowdowns for some clients if one client consumes large amounts of resources. The term Virtual Dedicated Server (VDS) is sometimes used interchangeably with VPS, but in practice, there is little difference between the two. When a client needs more capacity, they may need to switch to a new tariff with a different allocation of resources.

Cloud hosting

Cloud solutions provide users with a virtual infrastructure where the provider’s physical servers are combined into a single pool and capacity is flexibly distributed to clients based on their needs. Client data is not tied to a specific server, so in the event of equipment failure, it is automatically migrated to another server without the client noticing. The cloud model allows clients to access any hardware configuration and easily scale it as needed. Virtual machines in the cloud can be easily configured and networked.

In addition to basic cloud services such as cloud storage or cloud computing, providers provide various additional services:

  • Disaster recovery,
  • Backup,
  • Software as a Service
  • Postal service and much more.

Comparison of VPS and cloud hosting

At first glance, it is not obvious what the fundamental difference is between VPS | VDS and cloud services. However, it is, and essential. Below we will analyze in detail the differences between these types of virtualization on separate points.


With the infrastructure on VDS, the client can get full administrative rights and manage their resources as they would with physical servers.

In the clouds, the client often receives limited rights, the configuration is carried out by the technical specialists of the provider.


Any business can grow over time and need more computing power. Or, on the contrary, at some point, you need to reduce consumption.

When using VDS, the change in the volume of consumed resources is carried out by changing the tariff. Most likely, the transition will not happen instantly. In addition, tariff capacities are often slightly higher than you require, that is, some of them will be idle.  

In the cloud, scaling is much easier, faster, and more flexible. You can increase the capacity yourself at any time, without prior reservation. You can choose any configuration for your tasks. Moreover, usually, the client pays only for those resources that are actually used.


If VPS services are provided by a good provider, then the system is quite reliable and provides high uptime. However, in the event of technical problems, the entire server crashes and it can take a long time to recover.  

Cloud services are much more reliable. Users will not even notice most server failures because traffic is automatically redirected to another working resource. Virtual servers are completely isolated and do not affect others in any way. Therefore, the infrastructure in the cloud is very stable and resilient.


In both cases, much attention is paid to information security. First of all, this is ensuring the protection of data centers.

In the case of a VPS, the client’s data is stored on one server, root access gives the opportunity to fully customize security tools. On the other hand, in the event of an attack on one VPS, the neighbors on the server will feel it too.

In the clouds, resources are distributed across different physical servers, as a result, parts of the data can be stored in different places. This complicates the process of protecting data somewhat, but users are completely isolated. Also, the data is guarded by an additional layer of protection of the cloud infrastructure itself.

The cost

There is no fundamental difference in the cost of services, rather the payment models differ. When using VPS services, you pay a static amount according to the selected tariff. If you end up consuming less, the cost still doesn’t change. Plus, the level of service and fault tolerance with this model is lower.

In the clouds, you only pay for the services you consume. Some providers even offer hourly billing for more accurate monitoring.

What to choose

Each option has its pros and cons, how do you choose the best? To a large extent, this will be determined by your tasks and financial capabilities.

Virtual private servers (VPS) and cloud solutions are both types of virtualized environments that can be used to host websites, applications, and other online services. VPS hosting involves creating a dedicated virtual server with its own operating system and resources, while cloud solutions offer users a virtual infrastructure where they can flexibly distribute resources according to their needs.

When choosing between VPS and cloud hosting, the main factors to consider are budget, scalability, and security. VPS hosting is generally cheaper than purchasing physical equipment and can be a good option for small businesses or organizations with limited budgets. However, VPS servers are less flexible and have lower fault tolerance compared to cloud solutions. On the other hand, cloud hosting is more expensive but offers greater scalability and reliability, making it a good choice for large businesses or organizations with fluctuating power consumption.