Different names for the same technology
Virtual Private Server, or VPS, goes by several names across the industry:
- Virtual server
- Virtual machine (VM)
- Cloud server or Cloud VPS
- Virtual dedicated server (VDS)
- Droplet (DigitalOcean’s term)
- Slice (from Slicehost, an early pioneer)
Despite the different terminology, the fundamental concept remains identical: an isolated server environment created through virtualization that operates like dedicated hardware while sharing physical resources with other virtual machines.
The evolution from physical hardware to virtualization
Web hosting once required dedicated physical machines. Customers would wait for technicians to rack hardware, install operating systems, and configure networking. The process was slow, expensive, and inflexible.
Virtualization technology transformed this model entirely.
Hypervisor software enabled multiple isolated server environments on single physical machines. Each virtual server receives allocated CPU, memory, and storage resources while the underlying hardware serves many customers efficiently.
The impact was significant. Server provisioning dropped from days to minutes. Resources could scale without hardware changes. Providers could deliver dedicated-level performance at reduced costs.
Major cloud providers and smaller alternatives
AWS brought “cloud computing” into mainstream vocabulary through their EC2 service, establishing themselves as the market leader. Google Cloud and Azure followed with similar offerings.
One thing worth understanding: large cloud providers and smaller VPS companies use fundamentally identical virtualization technology. The differences appear in pricing structures, support models, and billing complexity rather than core infrastructure.
Major providers charge for numerous individual components: bandwidth, API operations, storage transactions. Smaller providers typically offer straightforward, predictable pricing without hidden costs.
KVM: the foundation of modern VPS hosting
KVM (Kernel-based Virtual Machine) powers most contemporary VPS platforms.
KVM operates as a virtualization layer built into the Linux kernel, enabling it to run multiple isolated virtual machines with independent operating systems. The technology delivers:
- Hardware isolation separating virtual machines completely
- Near-native performance through hardware virtualization extensions (Intel VT-x, AMD-V)
- Full virtualization running complete, unmodified operating systems
Earlier technologies like OpenVZ shared kernels between containers, creating security and compatibility constraints. KVM provides each VPS its own kernel, replicating dedicated server behavior precisely.
ColossusCloud runs entirely on KVM, ensuring genuine isolation and compatibility with any x86-compatible operating system.
Common applications for VPS hosting
A VPS handles virtually any workload suitable for dedicated servers:
- Web applications: Websites, APIs, and web services
- Self-hosted services: Email, file storage, password managers instead of SaaS subscriptions
- Database servers: MySQL, PostgreSQL, MongoDB, Redis
- Development environments: Staging servers matching production configurations
- Game servers: Minecraft, Valheim, and other multiplayer games
- VPN services: Private VPN servers for security or remote access
- AI and machine learning: Model training, fine-tuning, inference endpoints
- Automation: Scheduled tasks, bots, automated workflows
- Container hosting: Docker applications and orchestration
- Build pipelines: CI/CD runners and deployment systems
The flexibility distinguishes VPS from managed services that restrict configurations.
Resources included with VPS hosting
VPS subscriptions provide:
- Dedicated resources: Allocated CPU, RAM, and storage reserved exclusively for your use
- Complete operating system: Full Linux or Windows installation
- Administrative access: Root or Administrator privileges
- Isolation: Separation from other customers on shared hardware
This combination enables installing any compatible software, configuring environments precisely, and running applications requiring system-level access.
Categories of VPS management
VPS services divide into three management levels:
Unmanaged VPS
The provider maintains physical infrastructure and networking while you handle everything else:
- Operating system maintenance and updates
- Security configuration and hardening
- Software installation and administration
- Problem diagnosis and resolution
Unmanaged VPS costs less and provides maximum control. It suits those with technical expertise or willingness to learn.
Unmanaged VPS with control panel
A middle option combining self-management with graphical administration tools. Control panels like cPanel simplify:
- Email and website creation
- Database administration
- SSL certificate installation
- Backup configuration
Control panels reduce command-line requirements while still requiring attention to updates and security. Separate licensing applies.
Managed VPS
The provider handles administrative responsibilities:
- Operating system updates
- Security patching
- Monitoring and maintenance
- Technical support for server issues
Managed VPS carries higher costs but reduces time investment and technical burden.
Security responsibility with unmanaged hosting
Running unmanaged VPS means accepting security responsibilities.
Servers cannot run indefinitely without updates. Unpatched systems get compromised. Attackers continuously scan for vulnerable machines, and outdated software presents easy targets.
Maintaining servers is learnable:
- Most Linux distributions support automatic security updates
- ColossusCloud’s control panel includes update management features
- AI assistants can explain commands and procedures
Those unwilling to maintain servers should choose managed hosting or control panels. Regardless of approach, enable backup services. When problems occur through attacks, failed updates, or mistakes, backups enable recovery.
The ColossusCloud platform
ColossusCloud represents our proprietary VPS platform, developed and refined internally over years. The platform is not resold or white-labeled from other vendors.
Building our own platform provides:
- Direct feature control over development priorities
- Custom optimizations for performance and reliability
- Unified management through a single interface
All infrastructure belongs to us. Every router, switch, and server in our facilities is company-owned rather than leased.
Global network with redundant connectivity
Network reliability matches server reliability in importance. We operate six data centers, each featuring multi-homed BGP connectivity.
Multi-homed BGP means connections to multiple upstream internet providers at every location. If one provider experiences issues, traffic routes through alternatives automatically. This redundancy maintains connectivity despite individual network path problems.
Our data center locations span multiple continents for hosting near your users.
Determining if VPS hosting fits your needs
VPS hosting works well when you:
- Require more resources or control than shared hosting provides
- Want dedicated resources without dedicated server costs
- Have technical capabilities or willingness to learn (or prefer managed hosting)
- Need custom software or specific configurations
- Prefer self-hosting over SaaS subscriptions
For those outgrowing shared hosting or needing production-matching development environments, VPS typically represents the appropriate step.
Explore VPS hosting plans to find the right configuration.