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First things first,
What is a VPS ?
A VPS or Virtual Private Server is like having a your personal room in a house. The house here is the hardware server. PC enthusiasts can think of it as owning a drive ( partition ) in an HDD.
How is it different from a shared hosting ?
A VPS have resources allotted to it. Like 1 core CPU, RAM, bandwidth, an IP address, it's own operating system, server root access and isolation from other installations in a server. You have your own personal environment. You own whole room than a bed space as in shared hosting.
In case of a Virtual Private Server, you are having something as good as a server at a very affordable price. You have control over which distro you are going to use on it, and a personal environment on server. Unlike shared hosting your websites are not affected by misdeeds of those who use the same partition of the server. Resources of the server is normally divided to Virtual Private Servers to make them behave like individual servers.
What are the classifications in a Virtual Private Server ?
1.OpenVZ
This is a container based virualization technique in Linux. All VPS use the same Kernal ( of server ) to work.
2. KVM
Unlike OpenVZ, in a KVM VPS you will get private virtualized hardware. KVM allows the luxury of running a Windows and Linux VPS next to each other in a server.
3. Windows VPS
As the name suggests, a Windows VPS normally use a server edition of Microsoft Windows Operating system. It will help if you are handling ASP based script. You can also run PHP based scripts on a Windows Hosting.
4. Linux VPS
A Linux VPS uses a Linux operating system distro like Debian, CentOS or Ubuntu. Linux VPS are cheap for Linux is a free, open source operating system.
5. Managed and Unmanaged VPS
While buying VPS you get an option to handle the VPS yourselves or by hosting support staff. For an unmanaged VPS you need to install and maintain the VPS all by yourself.
So, are you confident about investing in a VPS ? Which classification will you choose ?