What is VPS hosting? Explanation, managed vs unmanaged and prices

VPS hosting is the middle ground between cheap shared hosting and expensive dedicated servers. You get your own virtual server with guaranteed resources, but you share the physical hardware with others. For websites that have outgrown shared hosting but don't yet need a dedicated server, VPS is often the perfect solution.

What exactly is VPS? VPS stands for Virtual Private Server. It's a virtual machine running on a physical server, but it behaves like an independent server. You get full control, dedicated resources, and the freedom to install software. At the same time, you share the underlying hardware with other VPS users.

In this guide, you'll learn everything about VPS hosting: how it works, what the difference is between managed and unmanaged, when to upgrade from shared hosting, and which providers offer the best VPS packages.

How does VPS hosting work?

VPS hosting uses virtualization technology to split one physical server into multiple virtual servers. Each VPS runs its own operating system and has allocated resources (CPU, RAM, storage) that aren't shared with other VPS users on the same machine.

This is fundamentally different from shared hosting. With shared hosting, hundreds of websites share the same resources. With VPS, you get, for example, 4GB RAM allocated, and that 4GB is yours. If another VPS on the same machine gets a lot of traffic, it has no impact on your allocated resources.

Virtualization happens via a hypervisor like KVM, VMware, or Hyper-V. This software layer ensures each VPS is completely isolated from other VPS environments. You can configure your own firewall, install software, and even replace the operating system without affecting other users.

You get root access (or administrator access with Windows VPS). This means full control over your server. You can install any software you need, adjust server settings, and implement your own security measures. For developers and tech-savvy users, this is invaluable.

Managed vs unmanaged VPS

The difference between managed and unmanaged VPS is huge and determines how much technical knowledge you need.

Unmanaged VPS means you do everything yourself. The provider delivers the server with a clean operating system, but beyond that you're on your own. You install the web server (Apache, Nginx), database (MySQL), PHP, security updates, firewall rules - everything. This is cheaper (from €5 per month) but requires Linux knowledge.

Who is unmanaged suitable for? Developers who know how to manage a Linux server. If terms like SSH, iptables, apt-get, and systemd mean nothing to you, stay away from unmanaged VPS. You risk security vulnerabilities and downtime if you don't know what you're doing.

Managed VPS means the hosting provider does the technical work. They install and maintain the web server, database, PHP, and other software. They do security updates, monitor the server, and help with problems. You focus on your website, not on server management.

Managed VPS costs more (from €15-€25 per month), but saves you dozens of hours per month. The provider often has an optimal server configuration for WordPress or other platforms. This means better performance than if you do it yourself without experience.

There's also a middle ground: semi-managed VPS. The provider does basic server management (updates, monitoring) but you install your own applications and software. This is a compromise between price and convenience.

Advantages of VPS hosting

Guaranteed resources With VPS, your CPU, RAM, and storage are allocated. If you pay for 4GB RAM, you get it. Other websites can't take this away. This results in consistent, predictable performance. Your website is just as fast at 3 AM as during a traffic spike.

Full control and flexibility With root access, you can configure everything the way you want. Do you want a specific PHP version, Redis caching, or a custom firewall? No problem. You're not limited to what the hosting provider has preset. For developers who want customization, this is essential.

Better security Because each VPS is completely isolated, a security breach at another VPS has no impact on your environment. You can implement your own security measures, like custom firewall rules, fail2ban, or two-factor authentication for SSH. This is much more secure than shared hosting.

Scalability Is your website growing? Upgrade your VPS with a few clicks to more CPU, RAM, or storage. With most providers, this happens without downtime. You start small and scale with your growth. This prevents you from paying too much in the beginning.

Dedicated IP address Each VPS has its own IP address. With shared hosting, you share an IP with hundreds of websites. If one of them sends spam and gets blacklisted, it affects your email deliverability. With a dedicated IP, you prevent this problem.

Better performance for webshops WooCommerce or Magento webshops need a lot of resources. VPS offers the power to handle hundreds to thousands of visitors simultaneously without slowing down. This results in better conversion and more revenue.

Host multiple websites On one VPS, you can easily host 10, 20, or even 50 websites (depending on traffic and resources). For web designers or agencies managing client websites, this is much more cost-effective than buying separate hosting for each site.

Disadvantages of VPS hosting

Technical knowledge required Especially with unmanaged VPS, you need to know what you're doing. Linux commands, server management, security configuration - it's not for beginners. A wrong firewall configuration can make your server vulnerable to attacks. Managed VPS partly solves this, but costs more.

Higher costs than shared hosting VPS costs €5 to €100+ per month, while shared hosting can start from €3 per month. For small websites with little traffic, VPS is overkill and too expensive. The extra costs are only worth it if you need the extra power and control.

You're responsible for backups With unmanaged VPS, you must make regular backups yourself. Forget this and your server crashes? Then you've lost all your data. Managed VPS often offers automatic backups, but not always. Verify this beforehand.

Server maintenance takes time Even with managed VPS, you sometimes have to do application updates, optimize databases, or troubleshoot problems yourself. This takes time. With shared hosting, the provider does all this for you.

Limited resources compared to dedicated A VPS still shares the physical hardware. In extreme cases, this can lead to "noisy neighbor" problems, although this is rare with good providers. For very heavily loaded applications, a dedicated server is better.

When to upgrade from shared to VPS?

There are clear signals that you're outgrowing shared hosting:

Your website is regularly slow or crashes If you regularly see load times of 5+ seconds in the evening or during peak hours, or your website gives "503 error," then shared hosting resources aren't enough. VPS solves this with guaranteed capacity.

You have more than 5,000-10,000 visitors per month From this point, most websites demand more resources than shared hosting offers. You notice this through slow database queries, timeout errors, or high CPU usage that the hosting provider blocks.

You run a webshop with orders Every second of load time costs conversion. For webshops that generate serious revenue, VPS hosting is a must. The investment of €20-€30 per month pays for itself in better user experience and higher conversion.

You need specific software Do you want to install Elasticsearch, use Redis, or run Node.js? On shared hosting, that's not possible. VPS gives you the freedom to install any software your application needs.

You host multiple websites Do you manage 5+ websites? Then it becomes expensive to buy separate shared hosting for each site. On one VPS, you can host all your sites for one price. This is more cost-effective and easier to manage.

You notice limitations in shared hosting Do you get notifications that you've reached the CPU limit? Can't you set up cronjobs the way you want? Are you hitting database connection limits? These are signs that shared hosting is too limited.

Best VPS providers in the Netherlands

TransIP TransIP offers unmanaged VPS from €7 per month (1 vCore, 1GB RAM, 50GB SSD). For €14 per month you get 2 vCores, 4GB RAM, and 100GB SSD, which is suitable for most medium-sized websites. Dutch support and reliable uptime. Check prices on our comparison overview.

Antagonist Specializes in managed WordPress VPS. From €25 per month you get a fully managed VPS optimized for WordPress. They do all the technical work, ideal if you have no server experience but want VPS performance.

Hostnet Managed VPS from €19.95 per month. Including DirectAdmin control panel, daily backups, and Dutch support. Good for people who want VPS power without having to learn Linux themselves. Stable provider with years of experience.

Vimexx VPS packages from €10 per month (managed) to €5 per month (unmanaged). Their Turbo VPS line uses NVMe SSD for extra speed. Good price-quality ratio and extensive guides for beginning VPS users.

International options DigitalOcean, Linode, and Vultr offer cloud VPS from €5-€6 per month. These are unmanaged but have excellent documentation. Suitable for developers looking for the cheapest option and have technical knowledge.

Practical tips for VPS hosting

Start with managed VPS if you're unsure Don't have Linux experience? Choose managed VPS. The extra €10-€15 per month prevents headaches, security risks, and downtime. You can always switch to unmanaged later when you have more experience.

Install a control panel Even on unmanaged VPS you can install cPanel, DirectAdmin, or free alternatives like Webmin. This makes website management much easier than doing everything via command line. You get a graphical interface like with shared hosting.

Set up a firewall immediately Within minutes of starting a VPS, your server is scanned by bots. Configure UFW (Uncomplicated Firewall) or use fail2ban to block brute-force attacks. This prevents your server from being compromised.

Automate backups Make daily backups and store them externally (not just on the same VPS). Use rsync to another VPS, or backup to cloud storage like Backblaze. Test your backups regularly to ensure they actually work.

Monitor your resource usage Install monitoring tools like Netdata or use your provider's built-in monitoring. This way you see when you're running out of RAM, CPU, or disk space. This prevents your website from crashing because you run out of resources.

Use a CDN Even on VPS, a CDN like Cloudflare or BunnyCDN helps. It reduces the load on your server and makes your website faster globally. The free version of Cloudflare is already very effective.

Optimize your database MySQL or MariaDB need tuning for optimal performance. Tools like MySQLTuner give recommendations for your configuration. A well-tuned database can make your website 2-3x faster.

Consider LiteSpeed or Nginx Apache is the standard web server, but LiteSpeed or Nginx are often faster and use fewer resources. LiteSpeed also has built-in caching for WordPress. This can significantly speed up your website.

Test performance before and after migration Before you migrate from shared to VPS, test your website speed with GTmetrix. Test again on the VPS. You should see a clear improvement. If not, your configuration isn't optimal.

Choose the right server location Is your server in Amsterdam and are your visitors in the Netherlands? Perfect. Do you have a lot of traffic from the US? Then a VPS in New York or Los Angeles is faster. Many providers offer multiple datacenter locations.

Want to compare VPS with other hosting types? Check out cloud hosting explained for an alternative, or read our hosting for developers guide for which hosting best suits your technical level.

Frequently Asked Questions

What is the difference between VPS and shared hosting?

With VPS hosting you have guaranteed resources (CPU, RAM) and full control. With shared hosting you share resources with other websites and have less control.

Do I need technical knowledge for a VPS?

An unmanaged VPS requires technical knowledge of Linux and server management. Managed VPS is more suitable for beginners because the provider handles management.

When should I switch from shared to VPS hosting?

Consider VPS when your website becomes slow, gets more than 50,000 visitors per month, or needs specific server configurations.