What is VPS hosting? Basically, VPS hosting (Virtual Private Server hosting) is a service that gives you a web server’s hardware to share with others without sharing the software. This means that you can have complete root control over the server as if it were your own dedicated server but you will still share the CPU, RAM, and bandwidth with other users. You can still have guaranteed CPU, disk space, and memory. This means you can install whatever you want.

Ultimately, it is used to decrease hardware costs by condensing a failover cluster to a single machine. Thus decreasing costs dramatically while providing the same services. Server roles and features are generally designed to operate in isolation. For example, Windows Server 2019 requires a certificate authority and a domain controller to exist on independent servers with independent instances of windows server. This is because additional roles and features adds areas of potential failure as well as adding visible security risks (placing a certificate authority on a domain controller poses the potential for root access to the root certificate). This directly motivates demand for virtual private servers in order to retain conflicting server roles and features on a single hosting machine. Also, the advent of virtual machine encrypted networks decreases pass-through risks that might have otherwise discouraged VPS usage as a legitimate hosting server.
A VPS runs its own copy of an operating system (OS), and customers may have superuser-level access to that operating system instance, so they can install almost any software that runs on that OS. For many purposes they are functionally equivalent to a dedicated physical server, and being software-defined, are able to be much more easily created and configured. They are priced much lower than an equivalent physical server. However, as they share the underlying physical hardware with other VPSes, performance may be lower, depending on the workload of any other executing virtual machines.[1]
This means just a few domains could pull an entire reseller website offline if transfer limits are not closely monitored on a regular basis. Many Cloud VPS plans offer a "pay as you go" approach to billing where only the actual amount of CPU resources, storage, and I/O processes are billed. Systems administrators and website publishers need to calculate expected monthly traffic rates when estimating how many system resources are required to support a website in production. "Pay as you go" approaches can be more costly than fixed ratio accounts, where the trade-off is typically a more advanced VPS platform and toolset.
As you can see, a VPS can be the perfect middle ground for many – enough flexibility and resources for those who need more access or control than on a shared server but without the cost of a dedicated server. If you need root access, you can’t get that on a shared server, but you can get it on a VPS. If your site experiences unpredictable swings memory usage, and your host provides it, then the presence of burstable memory will be attractive. And, if you’re a fan of customization, then the fact that you can customize server-level software such as PHP, MySQL, and Apache will perk your interest.  In short, choosing a VPS will allow you to have many of the same characteristics of a dedicated server but in a more affordable and manageable package.
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