A virtual server costs less than an equivalent physical server. However, as virtual servers share the underlying physical hardware with other VPSes, performance may be lower depending on the workload of any other executing virtual machines.
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In my opinion, anyone in need of a virtual private server should go for an all in one desktop setup. It entails improved administrative, security and flexibility attributes as compared to a number of hosting solutions meant for mutual use. It is actually possible to maintain your own virtual server when you have the right tools to do the job.