VPS vs cloud vs dedicated server in India: which do you need? (2026)
The three differ in two ways that matter: how much of the machine is yours, and who runs it. This guide explains each in plain terms, sets out what each costs in India, and shows when it's time to move up — from shared hosting to a VPS, or from a VPS to a dedicated server.
Updated · 7-minute read
A VPS is a guaranteed slice of one physical server; a cloud server is a virtual server on a pool of machines, usually self-managed and quick to create or resize; a dedicated server is a whole physical machine for you alone. Most small businesses are best on a managed VPS. Move to a cloud server if your team runs its own servers, and to a dedicated server when you need more than 32 GB of memory or disks nobody else touches.
| VPS | Cloud server | Dedicated server | |
|---|---|---|---|
| What it is | A guaranteed share of one physical server | A virtual server on a pool of servers | A whole physical server, yours alone |
| Resources | Fixed vCPU, memory and disk, not shared | Fixed plans, or resized on demand on the big clouds | Every core, disk and gigabyte of memory |
| Who runs it | Us, on a managed VPS | Usually you | You, or us on a fully managed server |
| From, at Chandnas | ₹5,899/month, managed | ₹1,199/month, self-managed | ₹11,299/month, self-managed |
| Best for | Business websites, online stores, Tally | Developers, testing and staging, small apps | Busy databases, ERPs, many sites, virtual machines |
Chandnas prices a month, exclusive of 18% GST.
What is a VPS?
A virtual private server: one physical server divided into several virtual ones, each with its own guaranteed CPU, memory, disk and IP address, and root access. You share the hardware, but not your resources.
It's the step up from shared hosting, where hundreds of sites share one server and the host limits each of them. On a VPS you can install what you need, and a busy neighbour can't take your memory.
At Chandnas, VPS plans are managed: we run the operating system, security updates, monitoring and daily backups. Linux plans start at ₹5,899/month; Windows plans, with the Windows Server licence included, at ₹8,299/month. Managed VPS
What is a cloud server?
A virtual server that runs on a pool of physical servers rather than on one. The term overlaps with VPS; in practice, "cloud server" usually means a self-managed virtual machine you can create, resize or remove quickly, sometimes billed by the hour.
The big public clouds — AWS, Azure, Google Cloud — are the best known. You pay for what you use, and you run the server yourself unless someone manages it for you. AWS managed services
At Chandnas, the Cloud VPS is the self-managed option: root access from ₹1,199/month, with the software on the server yours to look after. Cloud VPS
What is a dedicated server?
A whole physical server used only by you: every CPU core, every gigabyte of memory and every disk. It's also called bare metal, because there's no virtualisation layer between you and the hardware.
Dedicated servers suit work that needs predictable performance, or more than a VPS offers: a busy database, an ERP for a large team, dozens of sites, or virtual machines of your own.
At Chandnas, self-managed servers in Mumbai start at ₹11,299/month and fully managed ones at ₹19,999/month, with servers in the USA and Europe too. Dedicated servers
How much does each cost in India?
At Chandnas: a self-managed cloud VPS from ₹1,199 a month, a managed VPS from ₹5,899, a self-managed dedicated server from ₹11,299 and a fully managed one from ₹19,999, all exclusive of GST.
Most of the price gap is the management, not the hardware. A managed Linux VPS with 16 GB costs ₹12,699 a month; a self-managed dedicated server with 32 GB costs ₹11,599 — twice the memory for less, because you do the admin work yourself.
| Server | Size | Run by | A month |
|---|---|---|---|
| Cloud VPS Starter | 1 vCPU, 4 GB | You | ₹1,199 |
| Linux VPS · Cloud 8 | 2 vCPU, 8 GB | Us | ₹6,999 |
| Linux VPS · Cloud 16 | 4 vCPU, 16 GB | Us | ₹12,699 |
| Windows VPS · Cloud 32 | 6 vCPU, 32 GB | Us | ₹21,299 |
| Dedicated · Intel E-2386G | 6 cores, 32 GB | You | ₹11,599 |
| Dedicated · Intel E-2386G, fully managed | 6 cores, 32 GB | Us | ₹19,999 |
| Dedicated · EPYC 4464P | 12 cores, 64 GB | You | ₹31,299 |
Chandnas prices, exclusive of 18% GST. Same price at renewal.
Is a cloud server better than a VPS?
Not better — different in who runs it. Choose a managed VPS if nobody on your team administers servers; choose a self-managed cloud server if someone does and you want root access at the lowest price.
The big clouds add things a VPS doesn't: servers created in minutes through an API, managed databases, and scaling up and down with load. They pay off when your load really swings or you need those services. For a steady business website they're usually more to run, not less.
When do you need a dedicated server?
When a VPS runs out of room, or when you need performance nobody can share. Our largest VPS has 6 vCPU and 32 GB; beyond that, or for a database that needs disks to itself, a dedicated server is the next step.
Moving from a VPS to a dedicated server is a free migration. How much does a dedicated server cost?
- A busy database — an ERP, a large store, reporting — keeps waiting on disk
- You run dozens of sites, or virtual machines of your own
- Tally or an ERP for a large team, over Remote Desktop
- A client's checklist needs hardware no one else uses
- Steady heavy load, where a fixed monthly price beats paying by the hour
Managed or self-managed: the choice that matters more
Who runs the server matters more than what kind it is. A managed server comes with someone who patches it, watches it, backs it up and answers when it breaks; a self-managed one gives you root access and leaves the rest to you.
At Chandnas you can have either: a managed VPS or a Cloud VPS; a fully managed or self-managed dedicated server. What we do and what you do
| Managed | Self-managed | |
|---|---|---|
| Security updates and hardening | Us | You |
| Monitoring and alerts | Us | You |
| Backups and restores | Us | You, or add cloud backup |
| Hardware, network and power | Us | Us |
| Suits | Businesses without a server administrator | Teams with one |
Which is right for you?
| If this is you | Do this |
|---|---|
| A business website, WordPress or an online store, and nobody to run a server | Managed Linux VPS |
| Tally, a .NET application or other Windows software for a small team | Windows VPS |
| Your team runs its own servers and wants root access at the lowest price | Cloud VPS |
| Load swings by the hour, or you need managed databases | AWS managed services |
| More than 32 GB, a busy database or many sites | Dedicated server |
| A dedicated server, but nobody to run it | Managed dedicated server |
| AI models or rendering | GPU cloud |
Questions people ask
What's the difference between VPS and cloud hosting?
Mostly who runs it and how it's billed. A VPS is a fixed share of a server, often managed for you at a monthly price; cloud hosting usually means self-managed virtual servers you can create and resize quickly, sometimes billed by the hour.
Is a dedicated server faster than a VPS?
For the same size, usually a little, because nothing else runs on the hardware. The bigger difference is that you can have far more of it. A well-sized VPS is fast enough for most business websites.
Can I start on a VPS and move to a dedicated server later?
Yes. That's the usual path, and the move is a free migration: we set up the new server, copy everything across, test it and switch at a quiet hour.
Which is best for Tally?
A Windows VPS for a small team working over Remote Desktop; a dedicated server when many people use Tally or an ERP at once. Either way, the Windows licensing matters as much as the server.
What is bare metal?
Another name for a dedicated server: a physical machine with no virtualisation layer between you and the hardware, and no other customers on it.
Do I need a server at all?
Not for one simple website: shared hosting or a website builder may be enough. A VPS pays off once you run a store, an application or several sites, or need software the host won't install.
See managed VPS plans and prices.
Linux and Windows VPS plans in Mumbai, managed by us — with dedicated servers when you outgrow them.