VPS vs Dedicated

- 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.)