Guide · September 2026

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

The short answer

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.

VPSCloud serverDedicated server
What it isA guaranteed share of one physical serverA virtual server on a pool of serversA whole physical server, yours alone
ResourcesFixed vCPU, memory and disk, not sharedFixed plans, or resized on demand on the big cloudsEvery core, disk and gigabyte of memory
Who runs itUs, on a managed VPSUsually youYou, 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 forBusiness websites, online stores, TallyDevelopers, testing and staging, small appsBusy 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.

ServerSizeRun byA month
Cloud VPS Starter1 vCPU, 4 GBYou₹1,199
Linux VPS · Cloud 82 vCPU, 8 GBUs₹6,999
Linux VPS · Cloud 164 vCPU, 16 GBUs₹12,699
Windows VPS · Cloud 326 vCPU, 32 GBUs₹21,299
Dedicated · Intel E-2386G6 cores, 32 GBYou₹11,599
Dedicated · Intel E-2386G, fully managed6 cores, 32 GBUs₹19,999
Dedicated · EPYC 4464P12 cores, 64 GBYou₹31,299

Chandnas prices, exclusive of 18% GST. Same price at renewal.

When should you move from shared hosting to a VPS?

When the host starts limiting you: the site slows at busy times, you hit resource or email limits, or you need software the host won't install.

A managed VPS keeps what's easy about shared hosting — someone else runs the server — with resources that are yours. Moving is a free migration. How migration works

  • Pages slow down at busy times, or the host warns you about using too much CPU
  • You run a store, a booking system or an app, not just a brochure site
  • You need to install something — a newer PHP, Node, Python, a job queue
  • Email sending or scheduled-task limits get in the way
  • A client asks where the data lives and who else is on the server

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

ManagedSelf-managed
Security updates and hardeningUsYou
Monitoring and alertsUsYou
Backups and restoresUsYou, or add cloud backup
Hardware, network and powerUsUs
SuitsBusinesses without a server administratorTeams with one
Decision

Which is right for you?

If this is youDo this
A business website, WordPress or an online store, and nobody to run a serverManaged Linux VPS
Tally, a .NET application or other Windows software for a small teamWindows VPS
Your team runs its own servers and wants root access at the lowest priceCloud VPS
Load swings by the hour, or you need managed databasesAWS managed services
More than 32 GB, a busy database or many sitesDedicated server
A dedicated server, but nobody to run itManaged dedicated server
AI models or renderingGPU cloud
Questions

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.

Next step

See managed VPS plans and prices.

Linux and Windows VPS plans in Mumbai, managed by us — with dedicated servers when you outgrow them.

VPS plans