A VPS, or virtual private server, is a service used to host websites or apps. A VPN, or virtual private network, is a tool that protects your online activity. They’re often confused, which is understandable given their similar names.
Even though they sound alike, these technologies serve entirely different purposes. Let’s take a look at what a VPS and a VPN are, how each one works, and how to choose the right tool for your needs.
What Is a VPS?
A VPS (Virtual Private Server) is a type of hosting service that companies offer to website owners and developers. It allows you to host things like websites, stores, web apps, and development environments (a digital space where programmers can write and test their code).
When you subscribe to a VPS, you’re in control of what it’s used for. No other user can access your resources, and the server runs its own independent operating system (OS). You can make changes to the OS, run software, add your own security and backup options, and control who has access to the server.
How Does a VPS Work?
To help you understand a VPS, let’s briefly look into how hosting works. When you want to launch a website, it needs to be “hosted” somewhere. Hosting companies will provide a server for your website, which is basically a computer that runs 24/7, enabling visitors to access your website at any time.
Many websites don’t require extensive resources. For example, a local florist might only need a website with a few basic pages to allow potential customers to find the shop. On the other hand, an online store with thousands of products will require more storage and bandwidth, as it expects tens of thousands of visitors each month.
To handle all kinds of websites, hosting providers offer a range of plans, such as shared hosting, dedicated hosting, and VPS.
Shared Hosting
Shared hosting is ideal for small businesses and personal websites because it’s affordable and efficient. “Shared” means several websites are hosted on a single server, sharing resources. However, this setup comes with significant drawbacks. If one website gets hacked or its traffic spikes, it can slow down or disrupt the performance of all other sites on that server. These surges usually happen during peak times, such as during Black Friday or New Year sales.
Dedicated Hosting
Dedicated hosting means a single website is hosted on an entire server. You get root access (full control over the system) and can fully tailor it to your needs. Security holes or traffic spikes on other websites won’t affect the performance of your platform. However, dedicated hosting is much more expensive than shared hosting, so it’s usually a better option for large websites or enterprises.
Virtual Private Server (VPS)
Virtual private servers sit between shared hosting and dedicated hosting. While your website will be on a shared server used by other websites, you’ll have your own virtual machine with guaranteed resources. You also get root access to your virtual server, allowing you total control, including the ability to customize security by adding firewalls, malware blockers, or a VPN.
Because a VPS is still hosted on a server that other websites access, it’s usually more expensive than shared hosting but cheaper than dedicated servers. Its flexibility and reliability make it a great option if you need something more than a basic website but don’t require the extensive resources of a dedicated server. Since a VPS runs on virtual machines, scaling is quick and easy, too. It’s suitable for growing websites, as it lets you start small and gradually increase server power as your traffic or needs evolve.
What Is a VPN and How Does It Work?
A VPN (Virtual Private Network) is an online privacy tool that establishes a secure connection between your device and the internet. It encrypts your traffic and reroutes it through a VPN server on its way to whichever website you’re visiting. This hides what you’re doing online and changes your IP address, boosting your security and privacy. You can download a VPN and set it up in a matter of minutes.
Using a VPN can even stop advertisers and trackers from building a profile of you based on your browsing habits. VPNs also protect you against cyber threats like phishing, malware, man-in-the-middle attacks, and identity theft. This especially applies when you’re connecting to unsecured Wi-Fi networks like public hotspots, which can be vulnerable to hacking.
A VPN routes all of your internet traffic through a private server in a different location, which replaces your IP address with one from the VPN’s server. This enhances your privacy, since the websites or services you use can’t identify you via your IP or see your real location. When the VPN reroutes your traffic, it also encrypts it at the same time. That way, cybercriminals and snoopers can’t intercept your connection or see what you do online.
VPN technology is super useful when network administrators block access to certain websites. For example, your college campus or workplace might ban access to social media platforms like Facebook or Instagram. But if you use a VPN, it stops an ISP or local network from seeing what you’re accessing.
Comparison Table: VPS vs VPN
| VPS | VPN | |
| Purpose | Hosting websites and apps | Private and secure internet access |
| Privacy and security | Not private by default | Built-in encryption, IP masking |
| Setup complexity | Requires technical skill | Easy, even for beginners |
| Cost | Starts low, but can get very expensive | Typically has low, flat monthly fees |
| Best for | Developers and businesses requiring scalable hosting | Privacy-conscious individuals and businesses |
Can I Use a VPS as a VPN?
Yes, you can install VPN software on a VPS to turn it into your own VPN server. This gives you full control over how your traffic is routed and secured, and it might be a good option if you’re tech-savvy and like custom setups. However, running a VPS-based VPN requires a lot of time and technical knowledge. You’ll need to set everything up, manage security settings, handle software updates, and fix any issues that arise.
For most people, a trusted VPN service is the smarter choice. CyberGhost VPN works right out of the box, without complicated setup or server maintenance. It protects your connection with strong encryption, best-in-class VPN protocols, and automatic security features. Unless you have advanced networking skills and want to build everything from scratch, a professional VPN service is simpler, safer, and more convenient.
VPN vs VPS-Based VPN
Setting up a VPN on a VPS may be free, but it usually comes with hidden costs, ongoing maintenance, and technical hurdles. A traditional VPN service is ready to use from the get-go, with extra features designed to keep your connection private.
The main differences between the two lie in:
- Locations: Running your own VPN on a VPS changes your IP address to the location of the server you manage. This means you can’t swap to a different one if needed. A full VPN service comes with a network of servers worldwide, giving you a wide choice of locations to match your needs.
- IP addresses: Hosting your own VPN on a VPS means you control who uses its IP address. Choosing a VPN with dedicated IP addresses offers the same control without the hassle of managing your own server.
- Security features: Installing VPN software on a VPS encrypts your traffic, but it lacks built-in tools for extra protection. Trusted VPN services include additional features like an automatic kill switch, leak prevention, and even ad and malware blockers without manual setup.
- Logs: Using a VPN on your VPS gives you full responsibility for log settings and privacy policies. A reputable VPN enforces a strict no-logs policy without the need to configure or audit it yourself.
- Cost: A VPS often costs as much as or more than a full VPN subscription, which makes it more expensive even if you add a VPN to your VPS server for free. A VPN plan comes with premium privacy tools, a wide server network, and customer support with no hidden costs.
Why and When Should I Use a VPS?
A VPS is a popular solution for hosting websites or databases, deploying online services, running web applications, app development and testing, and backup storage. The more powerful the VPS server is, the more resources are at your website’s disposal. That means a better CPU for faster processing, more RAM for handling various tasks at once, more storage space, and higher bandwidth for smoother data transfer. This makes it ideal for performance-heavy websites, growing businesses, and sites expecting traffic spikes, like e-commerce platforms.
Since a VPS strikes a balance between cost and performance, it’s a smart alternative for websites too large for shared hosting but not ready to invest in a dedicated server. For many small and medium-sized businesses, a VPS delivers the scalability and control needed to support growth without breaking the budget.
Why and When Should I Use a VPN?
To Protect Your Privacy
Connecting to a VPN replaces your IP address with the server’s IP and encrypts your traffic. This stops websites, cybercriminals, and other online snoops from monitoring your location, browsing history, and online activity. No one will be able to link your digital habits back to you.
Be careful though, as not all VPNs are trustworthy. Some may log and store your online activity. To ensure real privacy, choose a no-logs VPN, which never tracks or collects your browsing data.
To Stay Connected
When traveling, a VPN is essential for safely using the same apps, services, and content you rely on at home. By connecting to a server in your home country, you’ll receive a local IP address. This allows you to access familiar websites, stay up to date with regional news, and securely manage banking or other sensitive tasks.
To Avoid Censorship
A VPN is a powerful tool to bypass online censorship. Restrictive networks (like those in certain schools, workplaces, or countries) may ban access to news portals, social media, and other sources of information. If VPNs are legal in your location, you can browse the internet without limitations by connecting to a server in a country without censorship restrictions.
To Prevent ISP Throttling
Many ISPs intentionally slow down your internet traffic during high-bandwidth activities, like streaming, gaming, or torrenting. A VPN hides your traffic from your provider, preventing them from throttling your speeds based on what you’re doing online. This means you enjoy faster, more stable connections without surprise slowdowns.
Choosing Between a VPS and a VPN
A VPS and a VPN are designed for different things, even though they can work together. A VPS is for hosting websites, apps, and other online services. A VPN, on the other hand, protects your internet connection, hides your IP address, and keeps your online activity private.
While it’s possible to turn a VPS into a VPN, it takes time, technical skill, and a lot of ongoing maintenance. And still, it won’t match the convenience and security features that come with a dedicated VPN service from the outset.
CyberGhost VPN is a premium service that is simple to use, offers thousands of servers worldwide, and includes extra tools like a kill switch, leak protection, and a strict no-logs policy. If online privacy, security, and ease of use matter most to you, it’s simply a much better choice. Plus, you can test it completely risk-free with a handy 45-day money-back guarantee.
FAQ
No, because a VPS isn’t designed with security in mind. It offers hosting resources with security options, like firewalls, access controls, and monitoring tools, but it doesn’t encrypt your traffic. A VPN secures your connection and hides your IP address to focus on protecting your data while you use the internet.
Yes, if you have the technical skills. You can install a VPN on a VPS to create a private server for your internet traffic. However, it takes time and skill to configure everything securely, keep the software updated, and manage potential issues. For most people, a trustworthy VPN service is a safer, faster, and easier alternative with built-in privacy and no manual configuration.
Use a VPN if you want enhanced online privacy, secure access to public Wi-Fi, and a way to go around local network restrictions or ISP throttling. You only need a VPS if you want to host websites, apps, or online services.
No, a VPS and a VPN are very different. Businesses and developers who require scalable website resources use a VPS as a hosting service. Many individuals and companies opt for a VPN to encrypt internet traffic and change their IP addresses—enabling private and secure internet connections.
A VPN is better for remote access because it creates an encrypted tunnel between your device and your company’s private assets. This lets remote workers safely use internal systems and resources without exposing sensitive data.
A VPS can also be accessed remotely, but mainly for managing websites, databases, or apps you host on it. It doesn’t secure your personal connection or provide private access to an existing network the way a VPN does.
Yes, you can set up a VPN in just a few clicks. You simply need to create an account and install an app (or plugin) on your device. A VPS is more complex, as you first need to choose a license and then configure your virtual server.
A VPS is designed for hosting websites and online applications. It provides dedicated server resources, storage, and bandwidth, so you can run your site reliably and handle traffic as it grows. A VPN doesn’t host websites at all. It encrypts your internet traffic and hides your IP address while you browse or connect to online services.
Only a VPN is built to protect your online privacy. It encrypts your traffic, hides your IP address, and prevents websites, malicious snoops, and any other third parties from tracking your browsing activity.
A VPS is meant for hosting websites, apps, and services, not securing your internet access. While you can install a VPN on your VPS server for added privacy, the setup can be pretty complex and doesn’t include built-in privacy tools a trusted VPN service comes with.
A VPN is generally much more affordable because it’s often sold as a simple subscription with set monthly or annual fees. This covers servers, encryption, security features, and customer support without extra maintenance costs for you.
A VPS often starts at a low price, but the costs can quickly add up if you need more CPU power, storage, or bandwidth to run your services. You’re also responsible for managing and securing your server, which often needs time and carries technical costs.
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