VPS vs VPN – A Complete Guide to Understand the Differences

VPS vs. VPN! Looks similar? Yes, but they work on entirely different concepts.

One hosts websites, while the other protects your online identity. Yet, both operate over the internet and share some underlying technological elements.

In this guide, we’ll clear the confusion and provide the easiest explanation on what VPS and VPN are, how they work, and when you should use them. A simple comparison table and real-world use cases will provide you with more clarity on each of them.

Let’s get started.

Quick VPS vs. VPN Comparison Table

Before a detailed comparison, we have this quick comparison to save your time. It highlights the core differences between VPS vs VPN in terms that matter to businesses.

Feature	VPS (Virtual Private Server)	VPN (Virtual Private Network)
Purpose	Remote teams, travelers, and data privacy needs	Encrypts internet traffic, ensures privacy
Primary Use	Server hosting, software testing	Secure browsing, remote access
Security Role	Depends on configuration	Built for secure online activity
Customizability	High – Full root access	Low – Limited to VPN settings
Cost	Higher – Ongoing server charges	Higher – Ongoing server charges
Setup Complexity	Moderate to high – Requires tech know-how	Low – Easy installation and use
Suitable For	Hosting environments, business platforms	Remote teams, travelers, data privacy needs
Data Encryption	No, unless configured	Yes – Automatically encrypts all traffic
IP Masking	No	Yes
Control & Resources	Dedicated virtual resources	No system-level control

What is a VPS & How Does it Work?

VPS (Virtual Private Server) is a virtual slice of a physical server with dedicated resources. It lets you host websites or apps with full control like a private server, but more affordable.

Here’s how it works:

A physical server is split into multiple virtual environments. Each one runs its own operating system and has dedicated resources, like RAM, CPU, and storage.

It seems like a private server, but actually, it is shared hardware with isolated environments.

With VPS, you get root access, and you can install anything that you want. And you control everything from software to security settings. This is perfect for the low-budget businesses or startups that need a separate server, but their budget doesn’t allow a full-blown physical server.

Cloud providers like AWS, DigitalOcean, and Hostinger offer VPS plans. All the plans are scalable with your growing business, pocket-friendly, and ready to launch in minutes.

It is important to keep in mind that with personal control comes responsibility, too. Your team must have basic server management skills.

In short, VPS gives you power and privacy, without owning the hardware.

What is a VPS used for?

If your business runs a website, app, or any digital service, a VPS can be helpful for you.

Here are common use cases where you can use a VPS:

Website Hosting: With VPS, you do not need to share your hosting space with hundreds of other users. You can run high-traffic sites on your personal server.

• App Development & Testing: You can completely isolate your testing environment from your live setup to do a final check. It can help you find errors and avoid any big blunders.
• eCommerce Stores: It can be more helpful for eCommerce Stores and provides faster load times and high-level security for online transactions.
• Custom Software Hosting: You can host many business tools on your specific terms, like CRMs and ERPs.
• Game Servers: A private multiplayer server offers a high-speed and consistent performance.

HostyCare VPS Server

5

Starting Price

₹ 629.00 excl. GST

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What Benefits Does VPS Offer?

Why should businesses choose VPS over cheaper shared hosting?

Here’s what makes it stand out:

• Personal Resources: You no longer have to fight with other users for bandwidth or memory.
• Root Access: You can install, remove, and customize software as per your choice.
• Better Performance: Your websites perform better with faster response times, and it gives its users a better experience.
• Scalable with Traffic: A VPS is scalable, and you can easily upgrade your resources as your website traffic grows.
• More Security: Your environment is isolated, even if others are on the same server.
• Smart Investment: You do not have to pay for the entire physical server. With a low investment, you get more power than with shared hosting.

Suggested Read: VPS Hosting Services

What is a VPN & How Does it Work?

A VPN (Virtual Private Network) is a secure tunnel between your device and the internet. It keeps your every internet activity private by hiding your IP address. Even if a website is not accessible in your area, you can view it using a VPN.

Here’s how it works:

Once you start using a VPN, your network device is linked using an encrypted tunnel to a distant server. All your online activities come through this tunnel.

Your data is secured, and your IP address is masked. What you do is undetectable by hackers, trackers, or even your ISP.

VPN is very easy to operate. Simply install a VPN application, choose a server, and you’re protected.

VPNs can also make you go through geo-restrictions. If you need to view blocked content or resources, simply change location virtually. To sum up, a VPN ensures that no one can spy on your online activity. It is all about privacy, freedom, and protection, particularly with remote teams and international businesses.

Avast SecureLine VPN

4.4

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₹ 4699.00 excl. GST

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What is a VPN used for?

Businesses use VPNs for much more:

• Secure Remote Access: You can access the internal systems of your company even remotely.
• Protection against data: You can protect sensitive files when sharing information via public networks.
• Anonymity on the Internet: Your browsing history is not shared by your competitors or spying ISPs.
• Bypass Network Blocks: It allows you to use restricted tools and services in some areas.
• Safe Communication: You can avoid leakage of data on your video calls, emails, or data transfer.

In a world where cybercrime is rising, VPNs are a must-have for digital-first teams. Whether you’re a startup or a large enterprise, if your data moves online, it needs protection.

Suggested Read: Netflix Unblocked: How to Unblock Netflix with VPN

What Benefits Does VPN Offer?

Here’s why it’s worth considering:

• Stronger Data Security: Encrypts internet traffic to keep sensitive info safe.
• Remote Work Ready: Employees will be able to connect to office networks safely at home or on the move.
• IP Masking: Masks your actual IP address so that you cannot be tracked and attacked.
• Bypass Restrictions: Unblock tools, platforms, or websites restricted in some places.
• Minimalized Risk on Public Wi-Fi: Secures corporate devices in airports, coffee shops, or co-working environments.
• Simple Setup: Most VPNs are very easy to use with plug-and-play installation.

NordVPN

4.4

Starting Price

₹ 7500.00 excl. GST

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Did you know?

‘VPNs form part of the cybersecurity strategy of more than 30 percent of businesses.’

Security & Privacy: VPS vs VPN

A VPN is built for privacy and security.

• It encrypts all internet traffic.
• It hides your IP address.
• It keeps data safe from hackers, trackers, and surveillance.
• And it is perfect for remote work, public Wi-Fi use, and secure browsing.

A VPS, on the other hand, is not secure by default.

• It is a virtual server, and you are the owner. That is why you have to set up firewalls, SSL certificates, and updates on your own.
• If you don’t secure it, it stays vulnerable.

VPNs offer out-of-the-box security. VPSs require hands-on management.

Nonetheless, VPS may be secured to the highest levels when properly installed through the expertise of your staff. Indeed, a few businesses run their own VPN on a VPS to have even greater control.

In summary, a VPN shields your data during transit. A VPS secures your data during storage and delivery.

Conclusion

VPS and VPN might sound similar, given that they solve very different issues. A VPS allows your company to host applications, websites, or systems in a completely controlled manner.

A VPS is the go-to when it comes to developing and expanding digital infrastructure.

A VPN, in turn, encrypts your online activity. It ensures that the internet traffic within your team remains confidential and secure, whether working remotely or just on the move. When it comes to access protection and ensuring privacy, a VPN is a way to go.

Choose what suits your objectives and assemble your tech stack with certainty and clarity

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