VPS Server What is a Virtual Dedicated Server? How is it different from VPS? The two services are similar, but there are some fundamental differences. A VPS server will let you create multiple instances on a single dedicated server. While a VDS or Virtual Dedicated Server will do the same, but take up the entirety of the dedicated server. Virtual Private Server hosting is the perfect price-power option for large projects as it grants large amounts of dedicated resources and the most control while being infinitely cheaper than having your own physical dedicated server.