VDS vs. VPS: What's the Difference and Which Should You Choose?

When you decide to rent a server, you'll come across two terms: VPS (Virtual Private Server) and VDS (Virtual Dedicated Server). Both are virtual servers created by dividing a physical server. The difference lies in how strictly the provider guarantees the resources assigned to you.

Short answer: There is no single official industry definition for these two terms. Most providers use them to mean the same thing. That's why you should look at a plan's technical specs rather than its name.

What is a VPS?

A VPS is a physical server split into pieces through virtualization. Each VPS has its own operating system and root access. Some providers allocate resources flexibly on VPSs: since not every user on the server is busy at the same time, they can hand out more resources in total than the physical capacity. This practice is called overselling, and it lowers the price, but performance may fluctuate during peak hours.

What is a VDS?

The term VDS is generally used to describe virtual servers whose resources are allocated as if they were dedicated. The processor cores and memory assigned to you aren't shared with anyone else, or are shared only to a very limited degree. As a result, performance is more predictable, while the price is a bit higher.

Comparison table

The virtualization type matters too

What matters more than the name is the technology used to virtualize the server:

• KVM (full virtualization): Each server is a true virtual machine with its own kernel. You can install different operating systems, and tools like Docker run without issues.
• Containers (LXC/Incus, OpenVZ): Servers share the host machine's kernel. They are very lightweight, boot quickly, and use resources efficiently. Some low-level operations (such as custom kernel modules) may be restricted.

For everyday tasks like running a website, an API, or a bot, either approach is more than enough. If you need custom kernel settings, your own VPN kernel module, or something like Windows, choose KVM.

Which one should I choose?

Ask yourself these questions:

1. How critical is my project? For an online store that makes money, stability matters.
2. Are my resource needs constant? A workload that uses a lot of CPU around the clock needs guaranteed resources.
3. What's my budget? For learning and experimenting, an affordable VPS is enough.

When choosing a plan, always check: the number of vCPUs, the amount of RAM, disk type and size, network speed, IP address, and virtualization type. We list the specs of our VPS plans clearly on their page.

Frequently Asked Questions

Is a VDS always faster than a VPS?

Not always. On the same hardware, a server with guaranteed resources runs more consistently, but what really determines speed is the physical hardware, the disk type, and how busy the server is.

Is a VDS the same as a physical (dedicated) server?

No. With a physical server, the entire machine is yours. A VDS is still a virtual server; you share the physical machine with other users, but the resources assigned to you are protected.

Does Docker work on a container-based server?

In most cases it works with nested container (nesting) support, but some advanced features may be limited. If you rely heavily on Docker, a KVM-based server will give you fewer headaches.