I originally wrote this in 2008 - but I think most still applies today. I'm looking for input/thoughts about what separates VPS from Dedicated today.

Virtual private servers (VPS) – have historically offered some middle ground between shared web hosting services and dedicated hosting services, both in control and cost, but recently the gap in cost between virtual and dedicated servers has diminished … making upgrades from shared to dedicated web hosting very attractive.

A virtual private server separates you from – other customers on a physical web server, running on a copy of its own operating system, but it shares CPU and RAM resources of the physical web server with other VPSs running on that server.

A dedicated server, on the other hand, is – a physical web server leased and controlled by the end client, without sharing physical CPU and RAM resources with other sites. Its very much like owning your own server, without the huge capital asset investment. Most hosts offer a mix of unmanaged versus managed services for dedicated servers. Unmanaged plans typically offer the basics – the hardware, operating system, control panel and Internet connection.

In a VPS, a single physical server is partitioned – so that it appears as multiple servers. The physical server boots normally, then runs a program to boot each VPS within a virtualization environment.

There are two kinds of virtualizations – software and hardware based. Software based environments share the same kernel and require the main node’s resources. In a web hosting environment, quota incrementing and decrementing in real time is possible without restarting the node. In a hardware based virtualization, real hardware resources are partitioned, eliminating burst or real time quota modification. This lends to a (potentially) more secure environment.

With a dedicated server, you have – more flexibility and control. Dedicated servers have historically been the server of choice for complex business or high end eCommerce sites, but have recently become very popular substitutes for VPS servers and less complex solutions.

The bottom line: Moving websites from a shared environment to either a VPS or dedicated server is a significant event. Its a major upgrade in the IT infrastructure supporting your business. Whereas the move from shared to dedicated was historically cost-prohibitive, and VPS offered some middle ground, technology has rapidly evolved to narrow that gap.

Upgrading should be based on more than cost

Upgrading your IT technology, in this case to VPS or Dedicated is now a business decision based on more than cost. It’s based on resources you control that will map your business success for years or decades.

Good job, @Steve. Overall, a VPS is a Virtual Private Server (Shared dedicated).

Dedicated Server - It's own server not shared!

Great article and yep it still applies!

Nice article, thanks for sharing!

I like thinking of it this way...

Dedicated Server = HUGE VPS
Normal VPS = small/tiny vps

I was asking this question previously. How would anyone know if the ordered Dedicated Server is really a Dedicated Server as opposed to it being a relatively LARGE VPS?

There's really no way of knowing it.

its very easy to tell

Do tell if you have a way of knowing it.

You can see also like this:
1. reseller hosting - a campus to stay in.
2. vps - your own rented apartment
3. dedicated server - your own apartment

Interesting analogy

Hi Steve,
I was wondering if you could expand on that?
Honestly, I don’t really see what your saying to be correct. Yes I have both types of servers and I can not see those differences.

Actually, a dedicated server is perhaps more like your own house.

In an apartment, it's possible for someone to get really loud and interfere with your life - kind of like on a VPS. Less so in a house.

I guess Google would be sort of like owning 400 private wooded acres, with multiple monorail connections to other estates

Depends on the dedicated server / virtualised server I guess.

A completely off the top of my head example is hardware clock. You can set this on a dedicated server - not a Virtualised server (at least not an openvz one)

How does this matter? Well, I had an openvz service with an incorrect hardware time set - caused all sorts of issues. creating offsets, etc didnt help either, as I was completely at the whim of the hardwaren node's administration.

Not the best example, I know. Just something off the top of my head whilst travelling on the bus

You can also tell from the kernel version if you're dealing with a VPS or a true dedicate server.

Though I've seen some clients purchase a dedicated server and then install Xen just to logically separate their own sites.

Thanks for sharing a great and very nice article....

I'd say that a VPS is more like your own rented room, and a dedicated server is a rented apartment. A collocated server is your own apartment - though you're getting your utilities from third parties.