VPN vs. VPS- What’s The Difference?


VPN and VPS sound similar, but both services are entirely different in functionalities. In this blog, I am aiming to explain the differences between both VPN and VPS. Let’s start with VPS first, then we will also take a look at VPN and its functions. 

What is VPS? 

VPS stands for a virtual private server, and its function is to host websites and applications on the web. 

Typically, a server works like a computer or a device that processes the user’s request and sends it back to the system where it has come from. 

A server processes data for the entire computer network i.e. LAN (Local Area Network) and also works for online applications that function on WAN (Wide Area Network). 

There are different types of servers to perform specific tasks for their network of computers. The entire process of assigning a server to the network is known as hosting. 

What Are the Types of Hosting Servers?

There are various types of hosting servers among which the two most common are Shared hosting servers and the other is dedicated hosting server. 

Shared hosting servers can respond to multiple clients’ requests simultaneously. While dedicated hosting servers only perform specific functions for specific clients. 

A VPS or virtual private server is a combination of both shared and dedicated hosting servers. VPS servers are capable of responding to various clients at once just like a shared hosting server. Moreover, due to its virtual servers, it can separate all clients and customize speed and privacy choices just like a dedicated server.

The Working Process Of A VPS 

VPS uses a special type of software called hypervisor that breaks physical servers into various virtual servers; this whole process is known as virtualization. 

All the virtual servers which are split by hypervisor software are known as virtual machines.  Each virtual machine works with their separate physical computer components i.e. RAM, CPU, hard disk, and others. 

In addition to the virtual machines, they enable users to install and use any preferred operating systems to run and host applications. 

This was a brief overview of the VPS and its function. Now, let’s walk through what is VPN and why it is different from VPS. 

What is a VPN? 

 VPN stands for virtual private network service used for securing your internet connection. It hides the IP address and enables you to change server location.  

Many countries in the world use this service. You can find a USA VPN, UK, Australia, and everywhere across the globe. 

Just like VPS, VPN also works with the network of servers but it doesn’t host your connection or website instead, it hides your connection and maintains online anonymity. 

When you connect to this, it processes your requests from its servers before arriving at the final destination.  In this way, your online activities appear to be coming from VPN servers with its assigned IP address and eventually hide your IP address. 

How Does A VPN Work? 

As soon as you install software on your device, it encrypts your data and forms a secure connection. Later, This software utilizes this secure connection to deliver your traffic to the VPN server. 

The VPN server decrypts your traffic and delivers it on the internet to receive a request-response.

The VPN server will encrypt your traffic again and sends back to you in the decrypted form so you can easily read it.  

Since the process of both encryption and decryption takes place via a secure connection or virtual tunnels, therefore, no one can intervene. 

In addition to the VPNs, It can also be used to bypass region restrictions. This works with thousands of servers spread around countries. it enables you to select your preferred server location. 

In this way, you choose your server location, and automatically your VPN assigned IP appears to be a part of your selected region and bypass content restriction of the specific region. 

VPS vs. VPN – The Differences  

VPS and VPN both function virtually and use servers to perform their dedicated tasks. This is the only similarity between these two.  However, when it comes to differences then there is much more which you can see. 

The first and foremost difference between a VPN and a VPS is that a VPS helps to host applications and websites. Whereas, a VPN creates a secure tunnel to hide online traffic. 

Websites and applications which are hosted by the VPS are fully open to hackers attack. On the other hand, a VPN is designed to protect websites and other businesses from hackers’ attacks and interventions. 

VPNs can be the right tool for businesses looking for online security and data protection. However, VPS will prove to be the right tool for businesses to host advanced websites and applications on the internet. VPNs and VPSs are entirely different from each other and there’s no comparison between them. Both VPNs and VPSs fulfill entirely different user needs and that’s why no one can compare these two with each other. 

VPS can never be used to encrypt and secure data online similarly, a VPN is not able to help individuals to host websites or applications on a network.  A user has to fully analyze his/her needs before selecting each of the mentioned services. 


I hope that after going through this short guide, many of you have clearly understood all the major differences between a VPN and a VPS. You can rely on a VPS for your hosting needs while a VPN is made to cover your online security needs. 


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