What does VPS hosting do for my business?

What does VPS hosting do for my business?

VPS hosting is where technology divides a server into multiple virtual private servers

November 22, 2023

VPS hosting is very popular in North America, and businesses widely use it for hosting websites, applications, and online services. Canada, has a robust and mature web hosting market, with a diverse range of hosting options available, including VPS hosting. Check out the best Canadian VPS providers here if you’re based in Canada.

VPS hosting is where virtualization technology divides a physical server into multiple virtual private servers. Each virtual private server acts as an independent and isolated server, having its own operating system (OS), resources, and a dedicated portion of the physical server’s CPU, RAM, and storage.

Key Features and Benefits of VPS Hosting

Each virtual private server operates independently, allowing businesses to have full control over their server environment.

Customization and Flexibility

Businesses have the ability to customize their VPS environment based on their specific needs, including the choice of operating system, software applications, and configurations.


VPS hosting allows for easy scalability, enabling users to upgrade or downgrade their resources (CPU, RAM, storage) as their website or application demands change over time.

Dedicated Resources

VPS hosting provides dedicated CPU, RAM, and storage resources allocated to each virtual server, ensuring consistent and reliable performance even during traffic spikes.

Enhanced Security

The isolated nature of VPS hosting enhances security by reducing the risk of one VPS affecting others.


While more expensive than shared hosting, VPS hosting is often more cost-effective than dedicated hosting. It strikes a balance between performance, customization, and cost.

Better Performance

Since each VPS has dedicated resources, it generally performs better than shared hosting, especially for websites with higher traffic or resource-intensive applications.

Hosting Multiple Websites or Applications

Businesses can host multiple websites or applications on a single VPS, making it a suitable solution for managing multiple projects under one hosting account.

Business Continuity and Disaster Recovery

VPS hosting allows businesses to implement robust backup and disaster recovery plans, ensuring business continuity in case of unforeseen events or data loss.

Root Access and Control

Users typically have root access or administrative control over their VPS, allowing them to install, configure, and manage software and applications as needed.

VPS vs. Shared Hosting

Small businesses, in particular, can be tempted to opt for shared hosting because of the lower price. Below is a list of the disadvantages of this type of hosting.

Limited Resources

Shared hosting means you’re sharing server resources (CPU, RAM, disk space, bandwidth) with multiple other websites. This sharing can result in limited resources during peak usage times, affecting your site’s performance.

Security Risks

Sharing a server means you’re also sharing the server’s security. If one website on the server is compromised, it could also affect other websites. While hosting providers take security measures, the risk is higher compared to more isolated hosting options like VPS or dedicated hosting.

Performance Variability

Since resources are shared, the activities and traffic of other websites on the same server can affect the performance of your website. If a neighboring site experiences a surge in traffic, it can slow down your own.

Dependence on Server Management

You rely on the hosting provider for server management, updates, and security. If the provider doesn’t promptly address issues or updates, your website’s performance and security may suffer.

Limited Customization

Shared hosting environments often have restrictions on certain configurations and customization options. You’re limited to the server settings and software the hosting provider provides, restricting your ability to tailor the environment to specific needs.

Traffic and Resource Limits

Shared hosting plans usually come with predefined limits on traffic, disk space, and other resources. If your website exceeds these limits, it could lead to overage charges, temporary suspension, or a requirement to upgrade to a more expensive plan.

No Dedicated IP Address

Shared hosting typically doesn’t provide a dedicated IP address for your website. While this may be a minor concern for some business websites, some applications or security measures may require a dedicated IP.

Less Control Over Server Configuration

As a shared hosting user, you have limited control over server configurations and settings. This can be a drawback if you require specific configurations or need to install custom software.

Influence of Other Websites

The reputation and activities of other websites on the shared server can influence your website’s reputation, especially in terms of email deliverability and search engine rankings. Businesses with high traffic, resource-intensive applications, or complex databases may experience performance issues on shared hosting due to resource limitations.

Image: Petter Lagson on Unsplash 

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