A virtual private server (VPS) runs on a physical computer server that has been partitioned into multiple virtual machines. Each virtual machine runs its own instance of a VPS, with its own operating system, custom configuration, and dedicated RAM and CPU. VPSes are used for website hosting and are usually provided as an option by web hosting companies.
Other types of web hosting include shared hosting and dedicated hosting. Shared hosting is the least expensive option, each client sharing the cost of one server. Shared hosting involves hundreds or thousands of websites sharing the same server resources. Unlike a VPS, which has its own dedicated RAM and CPU, websites that use shared hosting risk slow site performance if one or more websites on the server are monopolizing the server’s processing power.1 Dedicated hosting, the most expensive option, involves only one client per server. This type of hosting offers companies the most flexibility with the ability to choose an operating system, types of memory, and other hardware.
Cost-wise, VPS hosting is in the middle of shared hosting and dedicated hosting. A single server generally has between 10 and 20 VPSes, and server resources are split evenly. One client’s website performance does not affect another’s. This option also allows for flexibility in the configuration of the environment, choosing a particular operating system or other software, for example.
Today’s market size shows the total companies spent on virtual private servers worldwide in 2018 and projected for 2023. According to the source, Linux will garner the largest market share among VPS operating systems during this time period. North America was the largest market for VPSes in 2018, but the compound annual growth rate is expected to be highest in the Asia-Pacific region to 2023. Leading vendors include AWS, United Internet, GoDaddy, Endurance International Group, OVH, and DigitalOcean, to name a few.
1 Generally web hosting companies have procedures in place to prevent this scenario, but it is still a risk, however small.Geographic reference: World
Year: 2018 and 2023
Market size: $2.4 billion and $5.0 billion, respectively
Sources: “The Global VPS Market Size is Expected to Grow from USD 2.4 Billion in 2018 to USD 5.0 Billion by 2023, at a Compound Annual Growth Rate (CAGR) of 15.3%,” PRNewswire, April 10, 2019 available online here; John Stevens, “Different Types of Web Hosting, ” Hosting Facts, June 14, 2018 available online here; John Stevens, “11 Best VPS Hosting Options,” Hosting Facts, March 15, 2019 available online here.
Image source: Patrick Neufelder, “server-space-the-server-room-dark-2160321,” Pixabay, March 21, 2017 available online here.