Knowledge base · Updated: 24 September 2026 · WebPot DEV

VPS server: what is a VPS used for, and when is it worth it instead of shared hosting?

The short answer: a VPS (virtual private server) is an isolated slice of a physical server, with guaranteed processing power and memory, and its own operating system. It's worth it once shared hosting starts holding your business back: your webshop slows down, you need software that shared hosting won't allow, or you want to run several projects in one place. Until then, good shared hosting is cheaper and more convenient. When deciding, the rental fee is the smaller item; the bigger question is who manages the server.

SituationDo you need a VPS?
Brochure site or blog, a few hundred visitors a dayNo, good shared hosting is enough
WordPress site that slows down at peak timesWorth considering, but measure and cache first
Webshop with several thousand productsUsually yes
Magento 2 webshopYes, it doesn't run well on shared hosting
Custom web application, background processes, an APIYes
Several websites in one place, with shared backupsYes, if someone manages it

What is a VPS server used for?

With shared hosting, the provider decides what software runs and how much resource you get. With a VPS, you (or whoever manages it for you) decide. This freedom leads to six typical uses:

  • A webshop where speed matters. The database gets its own guaranteed memory, and you can put a cache in front of it (Redis, Varnish). The cart and admin area won't slow down just because a neighbouring site is having a traffic spike.
  • Magento 2. Magento needs a search engine (OpenSearch), caching and scheduled background jobs, none of which run reliably on shared hosting. Details on the Magento 2 webshop page.
  • Custom web application and API. Background processes, scheduled jobs, a Node.js or Python service, your own database settings. This is the natural environment for web applications.
  • Server-side tracking. Your own tracking container (for example, server-side Google Tag Manager) runs on your own server, and your advertising data stays on your own domain. More on this: server-side tracking.
  • Several projects in one place. A few websites on one server, with unified backups, monitoring and a regular update routine.
  • Reliable email delivery. Order confirmations and system emails go out with your own sending authentication, so they're less likely to end up in spam.

When you don't need a VPS?

For a brochure site or a small WordPress blog, a VPS is needlessly complicated. Over-sizing is just as much a mistake as under-sizing: you pay more for capacity you don't use. There's another, less obvious case too: when there's no one to manage it. An unpatched, unmanaged VPS is more dangerous than good shared hosting, because there the host handles the security updates; here, no one does.

If your site is slow, measure where it's getting stuck first. Often a cache or optimised images make more difference than a more powerful server. Our slow website guide can help.

Managed or unmanaged VPS?

With an unmanaged VPS, the provider only supplies the virtual machine; everything else is up to the tenant. With a managed VPS, a provider or a system administrator is responsible for the server. The difference between the two isn't in the machine, but in who gets woken up at night when something goes wrong.

What does server management mean in practice?

  • Security updates on a regular basis, for the operating system and every running service.
  • Protection: key-based SSH login instead of passwords, a firewall, and automatic blocking of repeated login attempts.
  • Off-site backups, with the restore process tested from time to time. An untested backup is just a hope.
  • Monitoring and alerts: disk space, memory, response time, SSL certificate expiry.
  • Version upgrades on a planned schedule: PHP, the database, the operating system, tested in a staging environment first.
  • Log monitoring, so a problem doesn't come to light through a customer first.

If no one at your company can do this regularly, the managed option is the safer choice. We provide exactly this on Ubuntu servers; you'll find the details, along with a detailed comparison of shared hosting, VPS and dedicated servers, on the Ubuntu VPS server management page.

What to check when renting a VPS?

AspectWhat to check
ProcessorThe cheapest packages' virtual cores are typically shared with other customers. For a busy webshop, it's worth choosing a dedicated core.
MemoryThe most common bottleneck. For a Magento 2 webshop, 8-16 GB is a reasonable minimum.
DiskNVMe SSD, sized large enough for local backups and logs too.
Data centreFor a Hungarian audience, a nearby European data centre, partly because of GDPR.
SnapshotUseful before an update, but it doesn't replace an off-site backup.
ScalingWhether the processor and memory can be upgraded within minutes, without migrating.
NetworkTraffic limits, DDoS protection, your own IPv4 address.

Ubuntu, Debian or Windows?

For a PHP-based website or webshop (WordPress, WooCommerce, Magento), you need Linux. We use Ubuntu Long Term Support (LTS) releases, because they get security updates for five years, so the server doesn't become outdated within a year or two. Debian is a similarly stable choice. You need a Windows server if the software is built on the .NET framework or Microsoft SQL Server, in which case you also need to budget for the licence fee.

How much does it cost?

You need to budget for two items. One is the VPS rental fee, which at entry level starts from €10 a month and rises in proportion to the resources. The other is management: you either pay for it with your own time, or you pay a managed service provider. There's also a one-off setup fee on top of this (installation, security configuration, backups, migration). We publish our own price bands on the Ubuntu VPS page.

Frequently asked questions about VPS servers

The entry-level VPS rental fee starts from €10 a month; a machine sized for a webshop costs several times that. On top of this comes the cost of management, which in practice is the bigger item.
Isolation is better, because another customer's compromised site can't reach yours. Security, though, comes down to management: an unpatched VPS is more vulnerable than well-maintained shared hosting.
Yes. The site is first built in parallel on the new server, where we test it. Only at the end do we switch over the domain's DNS record. For a webshop, a short order pause may be needed during the switchover, so no orders are lost.
For websites and webshops, Linux, for example Ubuntu LTS. You need Windows if the software is built on the .NET framework or Microsoft SQL Server.
For a brochure WordPress site, usually not. For a WooCommerce webshop with a lot of products and traffic, or if the site is still slow even with caching, it's worth it.
A VPS has a fixed monthly fee, with a predetermined amount of resources. The large cloud providers charge based on usage and offer lots of services you can combine. For a small or medium-sized business's website or webshop, a VPS is usually more predictable and cheaper.

Not sure whether you need a VPS, or how big?

Ask us what size server you need

Related pagesUbuntu VPS server management, Slow website: causes, measurement and fixes, Magento 2 webshop, web application development.

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