A Virtual Private Server (VPS) or Virtual Dedicated Server (VDS) is a preferred hosting solution for small to medium sized businesses that offers control at a level similar to a dedicated server while being as affordable as shared hosting.

Virtual Private Server technology is the next generation of web hosting that involves partitioning a single computer to simulate multiple servers. Each server has the look and feel of a physical server, with its own operating system and the ability to be rebooted independently of others. Linux or Windows VPS hosting can be a cost efficient and high performance solution.

Advantages of VPS Hosting

Virtual private servers are designed to save money without sacrificing of performance, flexibility and security. VPS hosting is the perfect compromise between a shared and dedicated server, at a reasonable price. Benefits include:

• Incredible Value – Dedicated server hosting can cost about $100 per month, while the price of a virtualized platform is similar to shared hosting. With VPS technology you can efficiently distribute the cost of the hardware, software, network connectivity and maintenance, without compromising on quality.
• Enhanced Protection – VPS offers better security than a shared hosting platform. In this isolated environment, you are shielded from the stability and security issues caused by other users. Though a dedicated server offers the best performance and security, VPS hosting is a very good 2nd option.
• Freedom and Flexibility – VPS grants you control and flexibility. You have the option of using provided add-on scripts or installing your own custom applications. You can create applications in your preferred programming technologies installed on the server, for example PHP, ASP or Cold Fusion.
• Guaranteed Power – You have guaranteed system resources. Unlike in a shared hosting environment, you do not have to compete for most resources and you can count on accurately measured allotments that fit your needs. This provides you with a robust, scalable solution that gives your business the room it needs to grow.

Disadvantages

• This option requires active maintenance of the server. This usually includes applying security patches and system updates, which takes time. You have to resolve problems yourself via remote administration.
• VPS hosting is still a grade below the power of a dedicated server. While you have a guaranteed allotment of system resources, you still share hardware assets with other VPS users hosting on the physical server. A VPS cannot achieve the stability and optimal performance of the dedicated variety.

Do You Need a Virtual Private Server?

A VPS hosting plan can be the solution to all of your needs. With all the technical aspects and minor drawbacks involved, you should carefully consider your options before making a decision. Analyze your needs and current hosting requirements. If your website is thriving on a shared server, then virtualization is not necessary. However, if you find that this environment can no longer deliver the performance and level of security you require, VPS hosting could be the next step towards expanding on your web presence.

The following is a list of recommended VPS hosting providers:

• Inmotion
• UltraHosting
• NS
• Acenet
• HostICan
• LiquidWeb
• Dotster
• Lunarpages
• 1&1 Internet
• XL Host

Source: Web Hosting Geeks