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VPS vs Physical Server: What is Better

VPS vs Physical Server: What is Better
Hostman Team
Technical writer
Infrastructure

Simply put, a server is a remote computer that is used by developers and webmasters as a software platform to store their apps and sites on.

When you want to deploy any online product to the World Wide Web you have to host it on a server that works 24/7 and make it available to any person from any part of the globe.

There are two types of servers. Physical ones that are actual computers with real hardware in them like one that you use but much more powerful. And virtual ones that are based on similar hardware of one vigorous PC running permanently but are in fact copies of real operating systems used as a substitute for physical servers with the same capabilities.

Now let’s get deeper into how different types of servers work. How are they structured in terms of technologies, which ones are most effective and which you should you choose for your project.

What are physical servers?

Sometimes it is called a "dedicated server". As we mentioned above, a physical server is a real computer with tangible hardware parts. It has a processor, a certain amount of RAM, a disk to store data on (SSD or HDD), a lot of connectivity ports, and stuff like that.

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It works like any PC, so it is possible to launch applications on it. And you can do so remotely. Some providers have plans with dedicated servers for rent. In summary, the process of working with this type of server is as follows:

  1. You pay in advance to access the server.

  2. Hosting gives you a pre-made machine with a certain amount of memory and other hardware components.

  3. You connect your device with a rented remote PC via a technology called SSH (or it's alternative) and control it as if it were your real computer.

Pros and cons of physical servers

The main advantage of using a dedicated server lies in the ability of the renter to control every aspect of the "machine". You have full access to anything software-wise, so you can use tools that are not available on IaaS-platforms or on virtual servers. DS comes with no restrictions at all. Also, such an approach gives you more security because nobody except you can access data inside a rented computer. Even a provider who can destroy your machine physically cannot override your privileges to control it and erase or alter data stored on the server.

There are also disadvantages in opting for such a solution. First off, it is expensive. Dedicated servers are costly to maintain so providers will charge you more, and you can’t do anything about this. Secondly, it is hard to scale a physical server when the audience for your application or the size of the database exceeds the already ambitious expectations you had when you rented it. It would be hard to move data from the old machine to the new one or to upgrade the current PC without shutting it down for maintenance.

Data backup on physical servers

One of the problems inherent in hosting products on a physical machine is the lack of basic tools to protect the data and duplicate it somewhere else in case of any malfunction.

To resolve this you might want to use software called Veeam. To back up a physical server developers have to add computers to a specific location named "Protection Group". This is possible via Veeam Backup and Replication tool. You have to add all the machines whose data you are going to add to the backup.

Then in the same application, you’ll be able to create a "Backup Job". It is a process that automatically gathers all the information from PCs included in the Protection Group.

What are virtual servers?

Virtual servers are simulacrums of physical ones. Sets of hardware and software technologies emulating real computers with the same capabilities you’d normally expect from them.

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They are also used to host websites and applications but in addition to traditional applications cloud technologies and different ways of virtualization introduced products that help to create fully functional digital workspaces, massive data storages, etc.

There are three main types of virtualizations:

  • OS-Level Virtualization — when the server containerizes certain applications or specific areas of OS, multiplies it, and makes it available for renters to install some software to work with.

  • Full Virtualization — it is a more complex virtual that is usually launched on bare metal (real computers hardware) using RAM, processor, and disk that exist and are not emulated.

  • Para-virtualization — once the hardware is used to install it many virtual OSes are controlled via special utilities called hypervisors.

Benefits of server virtualization

Different types of virtualization come with different advantages.

The most obvious one is saving. All three help providers to spend less money on actual hardware. They can create as many virtual servers on one computer with one set of RAM, ROM, etc. Artificial platforms like this are cheaper as a product for developers and webmasters. But at the same time, emulated servers have the same capabilities as real computers.

Moreover, para-virtualized solutions have enough security to work with sensitive data. And OS-level containers make it simple to scale the system as a whole.

Different ways of virtualization yielded different products based on it that are now used by hosting providers.

Virtual Private Servers

VPS is a product of para-virtualization. It is a server that "tries hard" to become a full-fledged computer and makes it possible to use any operating system and any tools that you wish to access on your remote server.

VPS is actively used by developers and webmasters around the world to:

  • create from low- to middle-level informational sites, online stores, commercial websites.

  • develop and test applications together with the team.

  • to host personal gaming servers.

  • to store databases.

It is quite multi-purposeful and most of the time the VPS’s capabilities would strongly depend on the plan that you chose renting the server (and your aims of course).

How does VPS work

Virtual Private Servers differ from each other by the technology that is used to create and control virtual machines. Usually, VPS is divided into two camps: based on OpenVZ tech and KVM tech. We’ve already discussed containerization, so OpenVZ is similar in terms of implementation. It makes it possible for a provider to host many virtual machines on one PC making each of them dependable on the same CPU, the same RAM, and the same disk. KVM is different because it helps to create many isolated artificial servers on one physical one. It is a much more secure and reliable technology.

Advantages and disadvantages of VPS

Pros of VPS are:

  • Relatively low price. It is not as cheap as basic virtual hosting but it costs less than a physical machine. Considering the fact that it behaves more like a real computer it seems to be a good bargain.

  • Less responsibility. You don’t really have to worry about the technical aspects. Just launch a server with a desired OS and applications and you are ready to go.

Cons of VPS are:

  • Dependency on shared hardware. Some types of VPS give you only a fraction of the hardware installed on a physical machine. In this case you’ll share it with other developers and webmasters. It sometimes means your application or website might performan poorly because of other tenants using the same server. Even if you choose proper virtualization technology, hypervisors will limit potential capabilities.

  • Also, you have no impact on hardware itself. You’re isolated inside the workplace guaranteed to you by a hypervisor.

Virtual Dedicated Servers

If you see the abbreviation VDS don’t bother looking for an explanation. It is basically the same technology represented by VPS. The only distinction you might stumble upon is a type of virtualization used for both. Webmasters sometimes like to emphasize it. Just as VDS only means KVM-like servers and VPS OpenVZ-like. More on this in our previous article.

Shared hostings

The most basic type of virtual servers. The idea of it is similar to containerization but on a more subtle level. Basically, when you rent shared hosting you get a space on the hard drive of a PC controlled by administrators of the host you pay.

It is not as bad as it might seem at first. Yes, your server in this case is just a folder. But nobody restricts you from putting files in it. It is therefore a mediocre but practical solution for simple websites (there are many devs out there who build on top of shared hostings rather massive WordPress-based projects).

If you need something more complex that requires installing different packages or using specific structures you should rent VPS and go a step further.

Cloud-based solutions

The highest degree of virtual servers. Clouds are ephemeral and outstandingly flexible. Virtually you can convert them into anything. Database, application server, digital office, private file storage, a stack of private clouds together forming hosts to deploy different tools on, etc.

On top of clouds, different companies build fully-fledged services that are almost ready to use before you click "buy". And they are separated into three groups:

  • IAAS — Infrastructure as a Service. A type of cloud where everything hardware-wise is on hosting and anything software-wise is on the tenant. A solid solution for a strong team of developers wishing to focus on development but not on server management.

  • PAAS — Platform as a Service. A more abstract form of service that cuts out part of the software management and puts developers eye to eye with the OS-level fragments of the infrastructure.

  • SAAS — Software as a Service. A modern solution for teams that have no need for OS-level control but rather certain software solutions. For example, Hostman offers pre-made virtual cloud clusters with analytic tools, gaming servers, databases, and other stuff that developers and entrepreneurs need for their work but have no competence to implement manually (or just don’t want to).

Data backup

Using modern virtual servers you don’t really have to worry about data safety. The host will take care of it (normally once you’ve pay for it). And it works not only for modern solutions like cloud-based ones but for classical VPS servers too.

To create backups you will need to access a control panel (a special tool provided by the host that lets interact with your server). In 99% of cases this will be a button or a tab saying "Create a backup" or something like this. Activating it will quickly and effortlessly create a copy of every bit of information on your server that you need. Moreover, you will probably to able to plan this procedure so it happens automatically every few days.

Conclusion

Here it is. It is of course up to you to choose what kind of server to use as a host but think twice before making a decision. Virtual platforms are highly anticipated because they are really easy to operate and powerful. Want to try one before paying for anything? Get to Hostman Marketplace and choose a virtual platform with a preinstalled software of your choice or deploy your own via GitHub. Everything is free for 7 days and after that prices start at just $5.5 per month.

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11 September 2025 · 7 min to read
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Google AI Studio: Full Guide to Google’s AI Tools

Google AI Studio is a web platform from Google for working with neural networks. At the core of the service is the family of advanced multimodal generative models, Gemini, which can handle text, images, video, and other types of data simultaneously. The platform allows you to prototype applications, answer questions, generate code, and create images and video content. Everything runs directly in the browser—no installation is required. The main feature of Google AI Studio is versatility. Everything you need is in one place and works in the browser: you visit the site, write a query, and within seconds get results. The service allows users to efficiently leverage the power of Google Gemini for rapid idea testing, working with code or text. Additionally, Google AI Studio can be used not only for answering questions but also as a starting point for future projects. The platform provides all the necessary tools, and Google does not claim ownership of the generated content. 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10 September 2025 · 8 min to read
Infrastructure

Cloud vs Dedicated Server for E-commerce

If your online store is growing, sooner or later a key infrastructure question arises: cloud or dedicated server? Which one can be launched faster, which will survive peak loads without “crashes,” and how much will it cost with backups and administration? In this article, we will examine the key differences between the cloud and a dedicated server, ways of calculating the total cost of ownership (TCO), and typical bottlenecks in e-commerce: the database, cache, and static files. Cloud and Dedicated Server: Main Differences Let’s draw a simple analogy. The cloud is like a room in a hotel: you can move in quickly, request another room if necessary, cleaning and maintenance are included.  A dedicated server is like owning a house: it is completely yours, no one shares resources, but you need to take care of it yourself. 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The disadvantages are slower scaling (waiting for an upgrade or migration), service downtime during failures may last longer, and administration of the server and organization of backups are entirely the responsibility of the client. What’s More Important for a Small Store You can launch an online store in the cloud today, in mere hours. When renting a dedicated server, allow time for its preparation: engineers need to assemble and test the configuration, especially if you ordered a custom one. Usually this takes a couple of days.  In the cloud, resources can be increased in a few clicks. On a dedicated server, the scaling process takes longer: you need to coordinate changes with engineers, wait for components, and install them in the data center. In some cases, it may require migration to a new server. Cloud offers many ready-made tools and automation. A dedicated server, as a rule, will require more manual configuration and regular involvement of an engineer. Money: if you have 20–300 orders per day and traffic “jumps,” the cloud is usually more profitable and quite suitable for solving such tasks. If orders are consistently high, 24/7, without sharp spikes, a dedicated server will be more reliable. In short: if you are just starting out, choose the cloud. When the load becomes consistently high, you can consider a dedicated server. Key Criteria When Choosing Infrastructure for an Online Store Let’s look at the key criteria to pay attention to when choosing between a cloud and a dedicated server. Speed of launch It is important for a business to launch in hours, not days. A cloud server and database are ready in just minutes. A dedicated server takes longer to prepare: on average, about an hour, and when ordering a custom configuration, it may take several days. Expenses Expenses in a small project can be calculated as the sum of these items:  Infrastructure: server, disks, traffic, IP, domains, CDN.  Reliability: backups and storing copies separately.  Administration: updates, monitoring, on-call duty.  Downtime: how much one hour of downtime costs (lost revenue + reputation). Peak loads Sometimes stores run sales, order promotions from bloggers, or it is simply the business season.  In the cloud, you can scale horizontally, setting up another VM, and vertically, by adding more vCPU and RAM.  To speed up images and static files loading, you can connect a CDN—this is equally available in the cloud and on a dedicated server.  With a dedicated server, you either have to pay for all the reserve capacity year-round, or request installation of additional modules—which, again, can take some time (hours or days, depending on component availability). Reliability and recovery There are two main parameters to consider when planning recovery time.  RTO: how much time the project can take to recover after downtime (goal: up to an hour).  RPO: how much data you are ready to lose during recovery (goal: up to 15 minutes, meaning that after the system is restored, you may lose only the data created in the last 15 minutes before the failure). Check: are backups scheduled, are copies stored outside the production server, will the system be able to recover automatically if production goes down. Security At a minimum, configure the site to work through an SSL certificate, set up multi-factor authentication in the control panel for administrators, and create a private network between the web server and the database. Performance Usually the bottlenecks of e-commerce are the database, cache, and images. To avoid problems when scaling, put images and videos in object storage, keep the database as a separate service, preferably with data replication. Monitor the response times of the cart and checkout pages—this is where sales most often fail if pages respond slowly. Growth and flexibility We recommend starting with a simple and reliable scheme: one cloud server + one separate database (DBaaS) + object storage for media. If you plan a sale, add another cloud server and a load balancer to distribute user traffic. Afterwards, return to the original scheme. Flexibility in this case may be more important than the “perfect” architecture at the start. Team competencies If there is no system administrator or developer in the team who can perform sysadmin functions, choose simple solutions: ready CMS images, managed DBs, automatic backups, built-in monitoring. The less manual work, the fewer risks. Building Reliable Infrastructure For a small store, a simple logic works: start with minimal but healthy architecture, and quickly increase capacity during sales. And just as quickly return to normal mode. Start with a clean cloud server on Ubuntu LTS, connect access via SSH keys, and disable password login. At the firewall level, leave only ports 80/443, the others are better disabled.  An alternative option is to use control panels (cPanel, FastPanel, etc.), where the stack is deployed “out of the box” and administration is available through a convenient graphical interface. Place the database separately and connect it to the application through a private network. This way it will not be accessible from the internet, and delays will be reduced. Create a separate DB user with minimal rights for the site, enable daily backups and store them outside the production environment. For sessions and cache use Redis: it will reduce load on the database and speed up product cards, search, and order processing. Transfer media files to object storage: CMS can easily be configured so that new uploads go to S3. On top of this, connect a CDN for images, JS, and CSS—this will provide a stable response speed for users from any region and relieve a significant load from web servers. Do not forget about Cache-Control and ETag headers: they will allow users’ browsers to keep static files longer in local cache, which speeds up site loading and reduces server load. Backups are part of the daily routine. For the database, make a daily full backup and several incremental points during the day, store copies for at least 30 days, and place them in another project or storage. Protect files and media with versioning in S3 and weekly server snapshots. Once a quarter perform a recovery “from scratch” on a clean machine to check your RTO and RPO. Monitoring allows you to reduce risks and prevent losses before failures occur. Monitor the response time for the cart and checkout, CPU load, and free disk space. Threshold values should be tied to your traffic: if response time goes down and CPU stays high, get ready to scale. A sales campaign should be prepared as carefully as a separate release. A day or two before launch make a snapshot and bring up a second machine, enable the load balancer, and check that sessions are in Redis so carts are not lost. Prepare the CDN in advance: open the most visited pages, product cards, and search results. Increase database resources in advance and check indexes on fields used for filtering and sorting. After the campaign ends, disable additional servers. Approach security issues without excessive measures, but consistently and systematically. In the store’s admin panel, enable multi-factor authentication and roles, on servers, prohibit SSH passwords, limit by IP, and use fail2ban against password brute force. To avoid overpaying, calculate infrastructure by roles: server, DB, S3 storage, CDN, snapshots and admin hours. Launch additional capacity only during peak days, and under normal load, plan infrastructure based on basic needs. Evaluate the cost of downtime: if it is higher than the cost of an additional server for a week, reserving resources for a promotion will be economically justified. Migration from a dedicated server to cloud hosting is safe if done in two phases. Prepare a copy of the infrastructure, place media files in S3 storage, and run the site on a test domain with regular DB synchronization. On migration day, freeze changes, make the final dump, lower TTL, and switch DNS. After switching, monitor metrics and logs, and keep the previous production environment in “read-only” mode for a day for emergency access. If you need size guidelines, think in terms of load.  Up to one hundred orders per day is usually enough with a server of 2 vCPU and 4–8 GB of memory, a separate DB of 1–2 vCPU and 2–4 GB, SSD of 60–120 GB, and a combination of S3+CDN with Redis.  With a load of 100–500 orders per day it is reasonable to use two cloud servers and a load balancer, a database with 2–4 vCPU and 8–16 GB, and if necessary, add a read replica.  With stable peak loads, the infrastructure is scaled to 2–3 cloud servers with 4–8 vCPU and 16 GB, a database with 4–8 vCPU and 32 GB, replication, and mandatory CDN.  These are starting points; further decisions are dictated by metrics. Conclusion There is no single correct answer in this subject. The choice between cloud and dedicated server depends on traffic, frequency of peaks, team competencies, and how much one hour of downtime costs you. It is important not to guess, but to rely on numbers and understand how quickly you can increase capacity and recover after a failure. If the store is small or growing, it is reasonable to start with the cloud: one server for the application, a separate DB, and object storage for media. Such a scheme can be launched in an evening, handles sales without long downtime, and does not force you to pay for “reserve” all year. The main thing is to immediately enable backups, configure a private network between the server and the DB, and have a scaling plan ready for sales days. When traffic becomes steady and high 24/7, and requirements for performance and integrations tighten, it makes sense to consider a dedicated server or hybrid. Often a combination works where the frontend application and static files remain in the cloud for flexibility, while the heavy DB or specific services move to “hardware.” The decision should be made not by preference, but by TCO, RTO/RPO, and load metrics.
09 September 2025 · 10 min to read

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