VPN (Virtual Private Network) and VPS (Virtual Private Server) are two terms often confused in the realm of networking and remote computing. While both involve the notion of virtualization and remote access, they provide entirely different services. This article will cover the important differences between VPN and VPS, their applications, and the benefits they bring to the users.
What is a VPN?
A Virtual Private Network (VPN) is a service that encrypts an internet connection and sends it through a remote server to mask an IP address and improve privacy. VPNs are commonly used for:

- Privacy & Security:Â Encrypts information against hackers, ISPs, or government snooping.
- Bypassing Geo-Restrictions:Â Accesses geo-restricted content, e.g. Netflix or BBC iPlayer.
- Safe Public Wi-Fi Use:Â Protection against cyber threats while connected to unsecured networks.
- Anonymous Browsing:Â Surf the web without leaving a real IP address trace to websites or advertisers.
How a VPN Works:
- You connect to a VPN server.
- Your internet traffic is encrypted.
- Websites see the VPN server’s IP instead of yours.
Examples of VPN Services: NordVPN, ExpressVPN, ProtonVPN.
What is a VPS?
A Virtual Private Server VPS (to state simply) emulates a dedicated server within a shared website hosting environment- using it in practice for:

- Web Hosting:Â Hosting websites, applications, or databases.
- Remote Development:Â Running software, game servers, or testing environments.
- Business Applications:Â Hosting email servers, CRM systems, or e-commerce platforms.
- Custom Configurations:Â Full root access allows installing any OS or software.
How a VPS Works:
- A physical server is split into various virtual servers.
- Every VPS runs a different OS with dedicated resources (CPU, RAM, and storage).
- Users have full control like a dedicated server but at much lower costs.
Examples of VPS Providers: DigitalOcean, Linode, AWS Lightsail.
Key Differences Between VPN and VPS
Feature | VPN | VPS |
---|---|---|
Purpose | Privacy & security for internet traffic | Remote server for hosting & computing |
Function | Encrypts & reroutes internet traffic | Provides a virtual machine for running applications |
User Control | Limited (depends on VPN provider) | Full root/administrative access |
Performance Impact | May slow down internet speed | Depends on allocated resources (CPU, RAM) |
Cost | Usually subscription-based (monthly/yearly) | Pay-as-you-go or fixed monthly plans |
Use Cases | Secure browsing, bypassing censorship | Web hosting, app deployment, remote servers |
Can a VPS Be Used as a VPN?
Yes, certainly. Only proficient users implement their VPNs using a VPS and WireGuard or OpenVPN. But:
- Pros: You maintain full command over the VPN server and don’t log anything.
- Cons: It requires some sort of technical knowledge to set it up. Features like the geographical locations are absent.

Conclusion: VPN vs. VPS
- A VPN will provide you with obfuscation if you want safety, anonymity, and geo-restricted content access for any online purpose.
- Or if you’ve got a website, application, or development project that requires a remote server to host it, get VPS.
The difference between the two technologies, however, is that one is intended to protect your internet activities while the other is meant for provision of a virtualized computing environment. You will be able to choose the most appropriate solution based on your needs when you understand the differences.