What is the Difference Between VPS & VDS?


What is the Difference Between VPS & VDS?

The terms VPS and VDS are two different types of hosting servers. They are sometimes used interchangeably as they both run on the virtualized technology, however, the way they function is not the same.  

Let’s dive in!

First of all, let’s explain what virtualization is.


Virtualization is the process of generating a virtual version of a computer system in a layer abstracted from the main hardware – the main server. Hardware elements such as storage, processor, and memory can be divided into several virtual computers or virtual machines (VMs).

And what makes virtualization feasible is what’s called a hypervisor

A hypervisor is software that operates on top of the physical server or host. It is used to create and manage virtual machines. Hypervisors essentially pool the resources from the physical server and then allocate them to your virtual environments or virtual machines.

What is a VPS?

VPS stands for Virtual Private Server. It is a virtual operating system that resides on a parent server and allows users to access virtualized server resources over the internet, either via a cloud or a hosting provider.

VPS is a form of multi-tenant cloud hosting. It duplicates the properties of a physical server – with the same functionality and processes – to be utilized by multiple users. 

Using virtualization, VPS is divided into distinct sections separated by virtual walls, enabling users to have their own discrete software and operating system. 

What is a VDS?

VDS is short for Virtual Dedicated Server. It is used to refer to a higher tier of VPS. 

However, a VDS doesn’t provide a multi-tenant environment. Each VDS offers a dedicated set of resources (CPU allocation, disk space, memory, operating system, and bandwidth) that only one user can access and utilize.

A VDS consists of server hardware and operating system (OS) that is driven by a remote access layer that allows end-users to access their server from anywhere in the world over the Internet.

While VDS provides a remote dedicated server, a VPS is a virtual machine that lies on top of a physical server where host machine resources are shared.


More cost-effective.Expensive, compared to VPS.
Hosts multiple server instancesServer instances take up the entire server
The operating system manages and controls server operationServer hardware is responsible for managing and controlling server operation
VM places above a physical server to host VPS instance and share server resourcesRemote dedicated server
A lower level of functionality A higher degree of functionality
The underlying server is shared with other virtual private servers created on the same node.Dedicated server underneath the layer of virtualization

Need more support? Contact us.

Explore LDC’s VPS Hosting plans and get started with VPS hosting today.