VPS vs Dedicated

Although I am somewhat of a new user to the VPS world I thought I'd write a short article giving an overview of why use VPS instead of dedicated servers for those of you who are involved in the hosting business or people thinking about leasing a VPS server. Here I will address misconceptions I had about VPS and talk about how my perspective on VPS is changing.

Why use Virtual Private Servers instead of Dedicated Servers

Like many of you when I first heard of the idea of VPS I pictured it is some small lame server that is sold to 12 year olds trying to start hosting companies on the cheap. It had never quite caught my attention until I decided I needed a remote name server and all I needed was enough of a server to run bind, but didn't want to by a dedicated box just to do that. So I got a VPS based on Virtuozzo for $80/year and it worked great.

In the process however I started understanding the VPS concept and it became apparent that this is more that just a tool to create little servers. The way I see it VPS can replace dedicated servers in many situations in a data center and do a better job than dedicated. You can actually give the customer more horsepower and better hosting than selling them a small dedicated box. (Of course big customers will still need their own server.)

I don't own a data center business myself but I have a friend who does and I colo several servers there. He has several racks of some old Celeron boxes with 512 mgs of ram and one or two 80 gig drives depending of if the customer has any concept of backups, which most of them don't. I'm looking at the racks of Celerons and P4s thinking that each rack could be consolidated into a single modern server and that the customers would actually have a better server than the one they are on now. And the cost saving is tremendous.

Advantages of VPS

Most small dedicated servers are a waste of resources. People buy bigger servers than they need and the excess capacity is wasted. These servers take both space an power which is expensive in a data center and you have hardware costs assiciated with each server that you have to recoup. People often don't do any backups so after several years the hard drive fails and they lose everything. And it's your fault for not backing them up in the first place.

Imagine a rack of 16 Celeron boxes with 80 gig drives being replaced by a Dual Core Athlox X2 with 8 gigs of ram and 4 500gb SATA 2 drives running in a raid 10 configuration. (Writing this in Feb of 2007 for future historians who will read this an laugh at the old days when computers had just gigabytes.) The above server would cost about $2000 to build and only take 2U of space and use far less power than the 16 machines that are being replaced.

Note that I'm suggesting in this example only a 16 to 1 consolidation. Everyone has the same amount of ram. In reality the consolidation is many times higher because most of those using the Celerons are not using all the memory. Many are using only 1/5 of what they have and a lot of that is used by the individual kernels running. In OpenVZ there is one kernel for everyone.

Not also that many of these servers have idle time where the processor is doing nothing and they have lots of extra hard drive spave that isn't being used. By consolidating these systems the free resources are combined allowing you to run many more logical servers that each have more resources than the individual servers.

On a dedicated computer the user is stuck with an old slow 32 bit processor, a limited amount of ram, and an old slow hard drive with no backups. In a VPS that same user is running on a shared dual core 64 bit CPU sharing 8 gigs of ram with fast modern large hard drives with raid backup. That is a significant improvement over having their own dedicated box. So this is a better deal for the customer.