A Virtual Private Server (VPS), which is also sometimes referred to as a Virtual Dedicated Server (VDS) is essentially a hybrid of a shared and a dedicated server. Actually, a server is split into several segments, each having its share of the resources. Each of the segments functions as a dedicated server. Almost all the advantages that a dedicated server has over a shared server are there as well with a VPS/VDS.

For example, if you host your website on a shared server on which a lot of other websites are also hosted, you never know when the users of some other sites would clog up all the bandwidth and the system resources. Such a situation would leave the users who are trying to access your site locked out and unable to access it. In the case of a dedicated, server all the bandwidth and system resources such as processor power, RAM and hard disk space is available at your disposal meaning no down time whatsoever and a 24/7 always on connection.

Similarly, with a VPS/VDS the bandwidth and system resources divided into segments are reserved for each segment. The available resources and bandwidth in the case of a VPS/VDS is not as much as what you would expect from a dedicated server, but still enough to provide smooth flow of traffic for a moderate number of users. The response time, which is quite importance in the driving in of traffic is just about the same for VPS/VDS as that of a dedicated server because the bandwidth is divided into solid chunks.

One of the advantages of a dedicated server that is not there in a virtual private server is the security. You can get a reliable connection of good bandwidth for a moderate number of user for a price only slightly higher than a shared server but you cannot guarantee the security of the data on the server as much as you can in the case of a dedicated server.

Because the server is not reserved only for you and other sites are also hosted on it, a great amount of security is compromised. If you plan to store and fetch sensitive data on your server, the recommendation would still be to go with a dedicated server, even after all the advantages of a VPS/ VDS, the biggest of which is the remarkable decrease in cost.

If your business is originated from Netherlands or if you just want your web pages to show higher up in the Google search results of users from the Netherlands, for whatever reasons that might be, then it would be a good idea to go for a VPS/VDS from Netherlands.

At the end of the day, you might come to the conclusion that a VPS is recommended for a smooth and reliable service for a moderate amount of traffic, but if security is of utmost importance, or even if the user base is too large for a segment of a server to handle, you might want to think about going for a dedicated server.