VPS vs VPN: Do You Need a Virtual Private Network or a Virtual Private Server

While they might sound similar, it’s important to consider the differences between a VPS vs a VPN. In fact, aside from both having the word “virtual” in their names, they don’t have much in common. One is a dedicated operating system hosted offline and offered as a service, and the other is a network of dedicated servers that facilitates Internet use.

Basically:

• VPS, which stands for Virtual Private Server, is a computer.
• VPN, which stands for Virtual Private Network, is a service.

As a business owner, it can be difficult to know what you need. You know you need a website and hosting service, but understanding which tools support your growth requires clarity. But think of the value of what both services communicate: privacy.

This article will explain the differences between VPN and VPS to help you make a more educated decision. For most businesses, a VPS is the foundation of their digital presence, while a VPN is a useful companion for privacy and security. Understanding when to use each can help you build both a faster and safer online environment.

What Is a VPN / Virtual Private Network?

While websites offer secure connections, Internet traffic is basically unsecured and can be tracked. When you visit a secure website, any data you exchange passes over a connection that has been encrypted by additional software. However, basic web surfing from page to page is visible on the public web. This does not mean you can be easily identified personally; this exchange of information is passed along via IP addresses controlled by Internet Service Providers (ISPs). However, an IP address can give away a lot of public data.

A virtual private network (VPN) is a network of dedicated servers that run a VPN service to create a private “tunnel” for Internet browsing. The VPN service then makes a secure internet connection available through that infrastructure. This is good for maintaining integrity in business communications or for managing anonymity when surfing the web. If you are looking for a safe and easy way to encrypt your Internet usage, then a VPN is for you.

The VPN encrypts your data, so if a breach occurs, attackers can’t read it. While free VPN services exist, they’re often unreliable and slow. Investing in a quality VPN provider delivers better performance and easier configuration.

How Does a VPN Work?

As an internet user, you start the VPN software using your VPN service. The software immediately encrypts your data before it even heads to the VPN server. Once it’s ready to go, traffic is sent to the VPN server and then on to your online destination. The destination sees the information as coming from the VPN server and its location, not your computer and your location.

For the most user-friendly option, you will need to install some additional software, compatible with Windows, Mac, or Linux, provided by the VPN service or your IT coordinator. The same software can also be installed on a smartphone or tablet. However, some VPN services can be used right from your browser. For more advanced usage, there are open-source software solutions like OpenVPN that can be installed on a private network.

Why Use a VPN?

Secure Browsing From Any Location

A VPN helps you browse securely and anonymously, maintain privacy, and avoid internet censorship. Most VPN services include cross-platform apps that route your traffic through servers worldwide.

Whether you’re working from airports, coffee shops, or checking banking information on public Wi-Fi, a VPN masks your location and hides your IP address. This makes it difficult for hackers to track and steal your private information. This is essential protection for teams that travel frequently, work remotely, or meet clients in public spaces.

Bypass Geographic Restrictions

VPN providers operate servers across continents and countries. You can connect through servers in Great Britain, the USA, Canada, or virtually any location. This allows you to bypass regional restrictions on content, social media, streaming services, or other geographically limited platforms.

Geographic flexibility offers significant advantages if you travel frequently or want to avoid location-based price discrimination.

Understanding VPN Limitations

While VPNs secure internet activity and protect business data, they don’t defend your device against malware. You still need to practice safe browsing and work with reputable websites.

Important privacy consideration: Logging into personal accounts like Gmail bypasses VPN identity protection. Google and similar platforms can still track your activity when you’re signed into their services. Social media and streaming platforms maintain this tracking capability through your account login, regardless of VPN usage.

Advanced users should also monitor for DNS leaks, where your ISP can still see your first connection hop if DNS isn’t properly configured through the VPN.

Combining VPN With VPS Hosting

Many businesses pair VPNs with VPS hosting for comprehensive security. Employees use VPNs to connect securely to company servers hosted on a VPS, protecting sensitive data while maintaining the performance and scalability VPS infrastructure provides.

Why Should I Not Use a VPN?

While VPNs are valuable, they come with tradeoffs. Connections can be slower due to encryption, and free VPNs are often unreliable. Many services also require a subscription, which can add to costs. And while VPNs protect data in transit, they don’t secure your device from malware or guarantee complete anonymity. This really matters if you log into accounts linked to your identity.

What Is a VPS / Virtual Private Server?

A virtual private server (VPS) functions like the computer you use at home, letting you install and run various software. Businesses primarily use VPS to host websites and run applications. A VPS is used primarily to host websites and provide a reliable hosting solution for apps and other services. Configure it the way you want; a VPS lets you do whatever you need it to do.

Freedom to Scale

The benefits of a VPS are many, but chief among them is freedom. Businesses need dedicated resources without sacrificing performance or competing for shared server capacity. A VPS provides the flexibility to run custom software, dedicated resources for optimal performance, and scalable infrastructure that grows with your business. That’s where a VPS shines.

A virtual private server is hosted online and runs a dedicated operating system, usually accessed through a paid subscription. Virtualization technology takes one physical server and divides it into multiple virtual servers, or ‘nodes’. Each of those units acts as a private server for one end user or as a proxy for third-party usage.

Modern data centers manage your server to ensure consistent connectivity.

For growing businesses, scalability is key. A VPS lets you easily upgrade resources without downtime, so your hosting can grow alongside your company. Agencies benefit from isolating client projects on dedicated VPS instances, while startups use VPS flexibility to test and deploy new applications without heavy upfront costs.

How Does a VPS Work?

Virtualization technology is used to take one physical piece of hardware and divide it into multiple virtual servers, or “nodes”. There is functionally little difference between a virtual machine and an actual piece of server hardware.

Independent Operating Systems

The virtualization software creates layers that isolate each compartment, giving it a dedicated operating system that runs independently. Even though the physical server is shared, other users do not have access to your data, just as you cannot access theirs.

Installing Custom Software

You can install custom software and configure security settings on demand, including opening or closing server ports. You can even host games.

With a VPS, you choose the level of management. A managed VPS with InMotion Hosting includes expert human support to handle software updates, security patches, and server optimization. This is ideal if you want to focus on business rather than maintenance. An unmanaged VPS gives developers full root access and control, perfect for custom configurations.

Why Use a VPS?

If your business is growing or you require special software or apps, a VPS can be just what you need.

Typically thought of as a middle ground between shared hosting and a dedicated server, a VPS offers a high level of customization without the high cost. In fact, a good developer can do anything on a VPS that they could do on a dedicated server. And this without responsibility for the hardware, maintenance, or support.

You can share content more freely without platform censorship restrictions. Hosted blogs and social media sites have restrictions on some content, but on your own platform, you will find fewer arbitrary limitations and avoid getting your content censored or throttled. An eCommerce site will run faster because of the dedicated system resources.

Most VPS plans are now part of larger cloud-hosted clusters. This makes them highly redundant and reliable for long-term usage with very few, if any, connectivity issues or outages. Downtime is so rare that you will likely not even notice if your server goes down for any reason. Find out what high availability means.

A VPS also gives you root user access to the entire server, including access to critical system logs and scripts that can help you diagnose issues. And you have a choice between a “managed” virtual server, with some software pre-installed, or an “unmanaged” cloud server. This is impossible to do with shared hosting, in which you are sharing the server with other users, and checking logs requires technical support.

VPS vs VPN: Top Differences

Once you understand what a VPS and a VPN are individually, the next step is comparing them directly. Looking at how they differ makes it easier to decide which solution matches your needs.

What Do You Need It For

The biggest difference between a VPS and a VPN is purpose. A VPS (Virtual Private Server) is designed to host websites, applications, and data with dedicated resources. It’s about performance, scalability, and control over your hosting environment. A VPN (Virtual Private Network), on the other hand, is all about security and privacy. It protects your connection to the internet by encrypting traffic and masking your IP address, but it doesn’t provide the computing power to run a site or application.

Who Is Using It and Why

Another key distinction is who uses them and why. Businesses, developers, and agencies choose VPS hosting when they need reliable infrastructure for growth. It powers eCommerce sites, SaaS platforms, and client projects. Teams turn to VPNs when they need to protect online activity and secure sensitive communications. While they share “virtual” in their names, their functions couldn’t be more different.

VPS vs VPN: What They Have in Common

Even though VPS and VPN serve different purposes, they both provide a level of independence and privacy compared to shared alternatives. A VPS gives you isolated resources on a server, so your site’s performance isn’t impacted by other users. A VPN gives you a private, encrypted connection, so your online activity is shielded from outside observers. In both cases, you’re getting more control and security than you would with a basic setup.

Both also involve a subscription model and remote infrastructure. With a VPS, you’re paying a hosting provider to manage the physical hardware while you use the virtual environment. With a VPN, you’re subscribing to a provider that maintains the servers and software needed to route and encrypt your traffic. In short, both VPS and VPN take something that would be complex to build on your own and make it accessible as a service.

VPN vs VPS | Wrapping it Up

A VPN is only used for one thing: keeping your data safe and secure when browsing the internet.

A VPS is a service provided by a hosting company to host a website or application. While it can ultimately be used to connect to the internet, it does not inherently keep your information secure.

In many cases, businesses use both. For example, you might host your website and apps on a VPS while requiring employees to connect via a VPN for added security. This way, you get both the performance of VPS hosting and the privacy of VPN connections.

There’s no universal ‘right’ choice between VPN and VPS, the right solution depends on your specific business needs. Think about your business needs, what’s most important at this time, and the reputation of the providers you consider. If you don’t find that your needs lean heavily in either direction, perhaps you need both. Consider VPS Hosting from InMotion Hosting.