What is the difference between VPN and VPS – HostStage

In the world of technology, you often come across these two acronyms: VPS and VPN. They might sound similar but cater to different purposes. 

Virtual Private Server or VPS Hosting in Australia is a web hosting server, whereas the VPN is a Virtual Private Network that helps in encrypted connection, allowing users to access the internet privately by routing their network traffic through a remote server. 

For example, if you are a business trying to create a website, you will require VPS from Australian Domain Hosts. But if you want to browse the internet in incognito mode without revealing your IP address, you will need VPN. 

If you are still confusing Australian VPS Hosting with VPN, read this article for detailed differences between these two terms.

What Is VPS?

VPS stands for Virtual Private Server, which offers web hosting services using virtualised technology. 

In this virtual environment, multiple users will get their own dedicated resources, operating systems and software within a shared physical server. 

Buying the best VPS Hosting is a cost-effective solution if you are looking between shared hosting and dedicated servers.

  • Pros of VPS:

      • Increase performance and scalability
      • Higher control over server settings
      • Allowing custom software installation
      • Higher security and privacy
  • Cons of VPS:

    • Requires technical knowledge for server management and configuration
    • Higher VPS cost compared to shared hosting
    • Potential performance issues if server resources are not properly allocated or manage

What Is VPN?

VPN stands for Virtual Private Network. It is a network technology that helps to establish a secure and encrypted public network connection and allows users to create their own private and encrypted tunnel. This tunnel is created between user devices and a remote server operated by a VPN service provider.

  • Pros of VPN:

      • Offers higher privacy and security of your data and against potential threats
      • Disallows websites and online services to track your online activities and location.
      • Provide access to geo-blocked content and bypass internet censorship that allows easy internet browsing
      • Ensure data security when connected to a public Wi-Fi network
  • Cons of VPN:

    • Potentially reduced speed of your internet connection
    • Compatible only with certain devices
    • Not all VPN providers may prioritise user privacy, leading to concerns about data logging and potential security breaches.

Difference Between VPS and VPN at a Glance

Aspect VPS (Virtual Private Server) VPN (Virtual Private Network)
Function It is a hosting solution for applications, websites, or data storage It is a network technology for secure and private internet connections
Purpose Control, scalability, and customisation Privacy, security, and bypassing restrictions
Resources It has dedicated resources within a virtualised server It has an encrypted tunnel and remote server infrastructure
Accessibility It has web-based access to manage the server and applications It is installed on devices or software to establish secure connections
IP Address It uses a static IP address for the server and associated services It masks the user’s IP address, providing anonymity and privacy
Data Encryption There is no automatic encryption, but users can implement security measures It encrypts data traffic to ensure privacy and prevent interception
Typical Users Businesses or individuals requiring hosting control and resources Individuals concerned about privacy, security, or bypassing restrictions
Applications Hosting websites, running applications, or data storage Protecting sensitive information, accessing restricted content


Understanding the differences between VPS and VPN is vital when buying a server for Web Hosting or data and network security. 

Thus comprehending them will help individuals and businesses to leverage the right technology effectively and efficiently.