VPS and VDS: virtualization and resource allocation
VPS and VDS names do not guarantee different technologies. Compare virtualization, resource allocation and supported operating systems.
VPS means virtual private server, while VDS usually means virtual dedicated server. Hosting providers often use these names for similar services. The label alone does not tell you whether a product uses containers, full virtual machines or dedicated CPU capacity, so read the technical description.
With operating-system-level containers, environments share the kernel of the physical host’s operating system. This can limit kernel changes and the operating systems that can run. With full virtual machines, such as those built using KVM, each virtual machine runs its own operating system kernel. Available installations still depend on the provider's supported operating system installations and service conditions.
It is therefore incorrect to assume that every VPS uses OpenVZ and every VDS uses KVM. A product sold as a VPS may use KVM and support Windows if the provider offers an appropriate installation and licensing arrangement. Confirm the actual platform and required features before ordering.
Compare how CPU, memory, storage and network resources are allocated. Ask whether CPU capacity is shared or dedicated and whether disk or network limits apply. Even when virtual machines have separate kernels, they may still compete for shared hardware resources. Performance needs testing with your application's workload.
Also check access to the recovery console, installation options, backup arrangements and upgrade procedures. Resource changes may require a restart depending on the platform. Choose the service that supports your software and operating requirements rather than treating either abbreviation as a universal quality rating.