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What is a Virtual Private Server?

9th Mar 2024

Wondering, “What is a VPS?” or, “What does VPS stand for?”

When it comes to your business’ security and performance, a Virtual Private Server (VPS) service is of the utmost importance. A VPS server has its own entire physical server off your premises and is operated by a VPS hosting provider. It holds virtualised server resources that are shared amongst other people, but your resources are still entirely private.

Virtual private servers are similar to shared hosting where customers all work on a shared server. However, VPS servers are a more efficient, private and cost effective solution than shared servers.

Improve efficiency with a virtual private server from an expert VPS provider like Beeks. Let’s discover more about what is a virtual private server and how outsourcing server management can streamline your operations.

What Does Virtual Private Server Mean?

When your company invests in a virtual private server (VPS), you’ll find that it’s a similar experience to shared and dedicated hosting. However, you still get dedicated resources for your operating system that you won’t have to share.

Your VPS hosting service provider will divide important server resources and create a virtual machine for each of their clients, and your own VPS server is isolated from others. You cannot customise the physical server yourself because you are one of many people using VPS services in shared hosting environments— you just have your own dedicated server.

So, what is the point of a VPS? For one, a VPS, virtual private server, increases security and helps you to save on expenses. The first step of VPS hosting is to choose the right VPS solution for your company. This depends on the kind of VPS features your business requires, such as security, resource allocation, customer support, performance, and more. A VPS virtual machine can be managed or unmanaged.

Managed VPS Hosting

With managed virtual private server hosting, your provider takes care of all the important responsibilities, from the installation of the VPS for your enterprise to monitoring your new VPS regularly.


Your hosting provider installs a virtual layer using virtualisation technology on their own operating system, taken from the existing physical resources. These are then divided into different virtual machines for multiple users.

Each user has their own virtual private servers and dedicated resources. The virtual server layer has its own components, operating systems, and software, offering you complete control over the virtual machine in the physical server.

While VPS hosting will work with shared resources, you still have guaranteed access to dedicated server space and the resources you have paid for without interruptions. Unlike shared hosting, these resources can only be used by your business. Shared hosting has many customers using the same server. In a fully managed hosting environment, hosting providers will also set up your control panel, important software, and required applications.


This is an ongoing process when your business decides to invest in a VPS. With a strong VPS hosting plan, your VPS hosting providers have server administration and will regularly update your operating system, applications, software, and more.

With regular updates, you are guaranteed access to the latest technological advancements and innovations, ensuring your resources are at peak productivity and efficiency.

Online Security

Your VPS hosting provider will take care of security patches for your software and system on virtual servers for you. This support makes sure that the virtual environment operates without interruptions. It also helps predict potential threats to your system in the future.


Even though your VPS is regularly updated, there is still the risk of potential cyber threats to think about. With VPS hosting, virtual servers are constantly monitored to achieve maximum productivity and mitigate risks.

Your VPS hosting provider will discover signs of hardware failure and viruses in advance to make sure virtual servers stay protected and optimised. Hosts will fix issues as they arise and predict future potential areas that may be affected.

Automated Backups

With VPS hosting server management, your website and all its data are consistently backed up and protected on dedicated servers.

If anything happens to go wrong with your site, you can just get back an earlier version of it on your private virtual server, as this data is consistently saved and stored.

Unmanaged VPS Hosting

There is a difference between fully managed VPS hosting and unmanaged VPS hosting. If you are not using a managed private server, your VPS hosting provider will still do the installation of the various components and ensure your software is updated. However, you will be responsible for the security matches, monitoring and backups of your VPS infrastructure.

With managed virtual private servers, your provider offers VPS support for your private VPS server and will take care of any issues. If your VPS package does not come with managed VPS hosting, it can result in a colossal loss of work hours as your IT team monitors the VPS machine and attempts to take care of technical problems.

Virtual Private Server vs Cloud, Shared & Dedicated Hosting

There are many different types of servers that you can host your resources on, from VPS and cloud hosting to shared and dedicated hosting. Each has its own uses, and every company has unique requirements for its server.

Shared Hosting

Shared hosting is quite different from VPS and dedicated hosting. Like VPS hosting, many customers share one physical server. However, you don’t have access to your own guaranteed resources.

When others need or use more resources, it affects your own server performance. This is a more cost-effective solution than dedicated hosting, but it negatively affects your performance and productivity. A VPS is an affordable option offering more control.

Dedicated Hosting

With a virtual dedicated server, you actually get the entire physical server and all of its resources. Dedicated servers allow you control over the hardware and software that would usually be shared amongst other clients with a VPS or shared hosting.

With dedicated hosting, you can change the processors and customise the setup to your preferences without having to worry about your performance being altered by other users. However, dedicated hosting is a much more expensive solution compared to the shared or virtual private server model.

Cloud Hosting

With a private server cloud, there are multiple servers on a private server network. It also uses more than one physical server. Once the servers are combined, you can access certain resources from your cloud virtual private server. The total resources are shared amongst the physical servers.

Sometimes, a cloud private server is set up so you are the only one with access to specific resources, while other times clients will share all of the available resources. It is more cost-effective in the long run than dedicated servers because you are only billed for the resources you use. However, the virtual private server price is often more affordable than a cloud server.

Applications of a Virtual Private Server

You may be wondering, ‘What is a VPS used for?’

Many industries and companies make use of virtual private servers, including large companies with remote employees, gaming companies, online stores, web design companies, and the financial services industry. When it comes to finance markets, many companies make use of trading servers for Forex VPS solutions.

A VPS trading server allows capital markets organisations to work remotely, improve security and perform exchanges whenever needed. The finance industry also makes use of a VPS to encrypt sensitive data, update security regularly and maintain compliance standards.

Benefits of a VPS For Finance Markets

There are many benefits of virtual servers for finance markets. Other than the general benefits enjoyed by all companies incorporating a virtual server, financial businesses benefit in the following ways:


When a financial company uses a VPS, it can improve its trade analysis and even implement automated trading. This is a fantastic benefit to keep in mind, especially when considering the amount of time traders can save on execution.

When certain trading tasks are automated, you can implement rules that will improve the accuracy of data entry and execution of tasks.


A speedy VPS is of the utmost importance in capital markets, as slow processes can seriously put your company at risk in the long run. Trading is a second-by-second game, and if deadlines are missed or tasks are not executed on time, you face potential losses.

With a high-speed VPS, your company can ensure that orders are on time and tasks are performed when needed. This can dramatically decrease the risk of potential losses and improve productivity and organisational efficiency. In turn, this also reduces expenses for the future by increasing productivity.


With the automation of processes, a VPS can help a financial company and its traders save an extraordinary amount of time.

When monitoring is automated and tasks are executed flawlessly by a computer, you improve accuracy and save time. Your company’s traders will have excess time to turn towards other vital tasks. Additionally, these tasks can continue to be implemented even when the trader is unavailable.


Financial data can be incredibly sensitive. There is no doubt that your company is storing confidential information. When you invest in a VPS, you will receive consistent support when it comes to protecting your data.

Not only do VPS hosts have innovative technology in place to safeguard your data, but they also monitor your information. This allows you to detect when there might be an instance of fraud, and it offers protection against cyber threats.


Financial companies and capital markets firms are subject to many different compliance standards and regulatory requirements.

Investing in a hosted VPS service allows financial companies to ensure they comply with all necessary compliance requirements. It guarantees that sensitive and confidential data is stored and dealt with securely and efficiently.

Choose Beeks’ Virtual Private Server Solutions

Beeks recognises that having an efficient VPS (virtual private server) is an essential component for the ongoing success of your business. It is important that your company is able to store, access, and utilise your resources with privacy, ease, and advanced security protocols.

We have extensive expertise and knowledge in cloud hosting and dedicated server solutions. We can help your business achieve its goals and meet all legislative requirements. That’s why we advise our clients to opt for a VPS for optimal protection, performance, and support.

Now that you know what a virtual private server is, you know how to streamline your operations. With our VPS options, your business will benefit from private connections, correctly allocated resources, and exclusive access to your sensitive data.

Interested in learning more about what is a VPS? Enquire about Beeks’ VPS hosting services to learn how you can achieve maximum cost efficiency and speed with a virtual private server.

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