Virtual Private Server Network

How many times have you heard service providers saying that they are a perfect fit for the VPS server business because they are already providing the network? What do they mean? How does your business benefit? Is network a critical component of your application or is it just a redundant item on the list? Let me answer these queries by explaining the three most important benefits of Virtual Private Server.

Before we get down to explaining the benefits of a VPS, let me define what a VPS is in the first place. VPS are similar to public clouds yet somewhat different – they can be defined as a private cloud infrastructure provided within a public cloud. The resources are owned and operated by the cloud provider. However, unlike public clouds, that are Internet reachable,  Intranet reachable.  So they look and feel like a part of a company’s MPLS-based internal Wide Area Network. Coming down to benefits, the three most essential benefits of a VPC are:

Bandwidth Efficiency

Take a look at the figures below, do you spot the difference? Yes, in the figure on the left, the traffic that is destined for the VPS is being sent via the company data center or is being looped through the company data center. This leads to wastage of bandwidth, router, switch and firewall capacity. Your company will end up paying twice for bandwidth. How? – By paying for the primary WAN connection and then for the Internet. Not to mention network sizing – the very basis of a cloud is access to on demand resources. In this case your network must always be sized for peak traffic. How is that efficient?

The figure on the right hand side shows a Virtual Private Cloud set up. With the second set up, the bandwidth required to reach the cloud will be billed for on-demand and users will be able to take the shortest and a cost effective route to the application.

Application Performance

Congestion in the Internet can disrupt or slow down your application traffic. Even if you have sized your network for peak times, inbound congestion could hamper application performance and make applications run slow. The point of congestion is shown in the above figure.

With Virtual Private Server, the VPS resources are routed through the corporate MPLS based WAN. Thus, traffic with a high priority can be marked and delivered accordingly.


Traffic to and from the Virtual Private Server stays within the corporate firewall without crossing the Internet.  With routing policies companies can also specify which users are allowed to reach the Cloud resources and which are not.

With public clouds, encryption technology will be required to help secure the transmission across the Internet. Although encryption is generally secure it is still one more thing that needs to be managed by Corporate IT and it needs to be configured correctly.  Furthermore, corporate IT will have no way to prevent users from attempting to access the Cloud resources.

A Word For Service Providers

The cloud service market is going to go through a sea change with significant market shifts in the coming years; hence, the cloud computing service providers must look at expanding their service offering through introduction of Virtual Private Server (VPS). They should look at crafting their VPS offering to meet the following criterion:

  • Emphasize “enterprise-strength” services with comprehensive security capabilities
  • Appropriately differentiate service levels and value-added services that go above and beyond basic compute capabilities
  • Properly balance service prices between the desire to be competitive and the desire to capture price premiums
  • Target the right customers and workloads


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