What Can You Do With a VPS? 10 Practical Uses for Small Businesses

A Virtual Private Server, or VPS, can do much more than host a small business website. Learn what a VPS actually is, how it differs from shared hosting, and 10 practical ways businesses can use one for websites, applications, remote access, databases, automation, file storage, and more.

Key Takeaways

• A VPS is a virtual server that gives a business more control and flexibility than typical shared web hosting without requiring the company to purchase a physical server.
• Small businesses can use a VPS for far more than website hosting. Potential uses include business applications, VPNs, remote desktops, databases, development environments, file storage, automation, and APIs.
• Not every small business needs a VPS. Shared or managed hosting may be easier and less expensive for a straightforward website with modest requirements.
• More control means more responsibility. Server updates, access controls, security, monitoring, and backups must still be properly managed.
• Managed VPS hosting can make more sense for nontechnical owners who need VPS capabilities without wanting to administer a server themselves.
• A VPS should never be treated as your only backup. Critical business information should have an independent backup and recovery strategy.
• Start with the business problem rather than the server specifications. Determine what you need to run before comparing CPU, RAM, storage, bandwidth, and other VPS features.

As a business grows, its technology requirements often grow with it. A basic shared hosting plan may be perfectly adequate for a relatively simple business website. Eventually, however, you may need more processing power, greater control over your server environment, or the ability to run applications and services that ordinary shared hosting was never designed to handle.

That is where a Virtual Private Server, or VPS, can become useful. If you have never heard the term before, the concept is simpler than the name makes it sound.

What Is a VPS?

A VPS is a virtual computer that runs on a larger physical server. The physical machine is divided into multiple independent virtual environments, each with its own operating system, software, storage, memory, and configuration.

Think of the difference between shared hosting and a VPS somewhat like the difference between renting a room and renting an apartment. With basic shared hosting, many websites use the same underlying server environment, and the hosting company makes most of the technical decisions for you. With a VPS, you still share the physical hardware with other customers, but your virtual environment is separated from theirs and generally gives you substantially more control.

That control can be valuable, but it comes with responsibility. Depending on whether you purchase a managed or unmanaged VPS, someone needs to install updates, configure security, monitor the server, manage backups, and troubleshoot problems. For a small business without technical expertise, a managed VPS or assistance from an experienced IT professional may therefore make more sense than managing the server independently.

A company can use a VPS provider such as VPSMakers to host its WordPress website, run business applications or databases, or provide remote desktop access to employees. Beyond these services, a VPS can also be used to configure a private VPN server, create a development environment, host file storage, or run backend services for applications.

However, not every workload is suitable for a VPS. Before choosing a configuration, consider server resources, expected traffic, operating system compatibility, network speed, security requirements, backups, uptime, and the technical expertise needed to maintain the environment.

If your primary concern is simply finding somewhere to put a small website, you may not need a VPS at all. Our PowerHomeBiz guide to what small businesses should know about web hosting limits explains why CPU, memory, database usage, traffic spikes, and other resource limits matter when evaluating hosting plans.

Here are 10 practical ways a growing small business might use a VPS.

1. Host a Business Website on a VPS

One of the most common uses of a VPS for a small business is hosting its website. Instead of relying on shared hosting, a VPS provides a more isolated, configurable environment where you can install required services and software and configure the server to fit your needs.

This doesn’t mean every small business website should move to a VPS right away. Shared or managed hosting is often easier and less expensive for a straightforward website. A VPS becomes more interesting when your website has outgrown those limits, requires a specific software configuration, or needs resources and server access your current hosting plan cannot provide.

Run WordPress and Other CMS Websites

You can use a VPS to host a WordPress website or other content management systems (CMS) such as Joomla. While WordPress and similar platforms can also run on shared hosting, a VPS gives you greater control over the operating system, installed software, frameworks such as PHP and .NET, and database configuration.

According to WordPress’s official hosting requirements, a host needs to support specific versions of PHP and MySQL or MariaDB as well as HTTPS. WordPress also warns that outdated software can create security vulnerabilities. That is an important distinction for business owners: having greater control over a VPS is beneficial only if the server is properly maintained and updated.

A VPS can therefore be useful when a website requires specific server configurations or additional resources that a basic shared hosting plan may not provide.

Host Custom Business Websites and Web Applications

On a VPS, you can run custom websites and web applications developed with technologies such as PHP, Python, Node.js, or other server-side languages. Developers can install the required runtime dependencies instead of being restricted to whatever software the shared hosting provider makes available.

This makes a VPS suitable for businesses running custom dashboards, customer portals, booking systems, e-commerce applications, or other web-based automation tools. The key question isn’t whether a VPS can run an application, but whether your company has the expertise and resources to run it reliably.

Handle Higher Traffic and Resource Demands

As a business website grows, it may require more resources than a shared hosting environment can comfortably provide. A VPS typically gives your virtual environment an allocated amount of CPU, RAM, and storage, allowing you to choose a configuration that better matches your workload.

Some VPS services also provide one or more dedicated IP addresses rather than placing your site behind an IP address shared by many unrelated websites. Whether a dedicated IP is necessary depends on the application and hosting configuration, so it should not by itself be the reason you move to a VPS.

2. Host Business Applications and Internal Tools on a VPS

You can use a VPS for hosting business applications that employees use daily. Instead of purchasing and maintaining a physical server in the office, a company may be able to run certain applications in a virtual server environment.

That can make applications easier to access across locations and can give the business greater control over how the software is configured. However, moving an application onto a VPS doesn’t automatically make it secure. You still need to configure access controls, encryption, software updates, backups, monitoring, and other safeguards.

Run CRM and Customer Management Systems

You can host certain CRM platforms on a VPS to manage customer information, sales activities, communications, and other customer-related data. A self-hosted CRM can give the business greater control over its application environment, user access, and stored data.

A VPS can be particularly useful for businesses that need to install a specific self-hosted CRM platform or customize the environment according to their workflow. Because customer databases can contain sensitive information, however, greater control also creates greater responsibility for protecting that information.

The Federal Trade Commission’s Cybersecurity for Small Business guidance recommends limiting access to sensitive information, using multi-factor authentication, encrypting sensitive data, keeping software updated, and regularly backing up important information.

Host Inventory and Business Management Software

A VPS can be used to run compatible inventory management, order management, accounting, or other business management applications. Employees may then be able to access those systems through a browser or remote connection rather than installing and maintaining the application separately on every computer.

This setup can give a company a centralized environment for applications and data. Before moving accounting, customer, employee, or other sensitive information onto a VPS, businesses should determine whether the proposed configuration satisfies their security, privacy, regulatory, and software-vendor requirements.

Provide Access to Internal Dashboards and Tools

You can also use a VPS to host internal dashboards and custom tools intended only for employees. These could include sales dashboards, reporting systems, project management tools, or custom applications developed specifically for the company’s workflow.

Restrict access to internal tools rather than exposing them to the public internet. Authentication, network controls, encryption, and user permissions become especially important when those systems contain business or customer information.

3. Set Up a Private Business VPN

You can use a VPS to run a Virtual Private Network (VPN) that lets authorized employees connect securely to company resources from outside the office. This can help businesses with remote employees, contractors, or freelancers who need access to systems that should not be openly available on the internet.

A VPN creates an encrypted connection between the user’s device and the VPN server. For business owners, the key benefit is that employees can securely connect to approved resources even when working outside the office.

The FTC specifically recommends that businesses consider VPNs for employees and vendors connecting remotely and advises companies to require secure connections for remote network access.

Give Remote Employees Secure Network Access

Remote employees can connect to the company’s VPN to access authorized applications, files, or other services. This provides a protected connection without exposing those services directly to the internet.

However, a VPN is not a complete cybersecurity strategy. Businesses should still use strong authentication, preferably multi-factor authentication, keep software updated, restrict permissions, and secure the devices connecting to the network. For additional guidance, see PowerHomeBiz’s discussion of how small businesses should think about cybersecurity and remote access.

Control User Access to Business Resources

A properly configured VPN can also support a broader access-control strategy. Rather than making every internal service publicly accessible, businesses can limit access to authorized users and networks.

This helps businesses give employees access to the tools they need while keeping other resources restricted. The principle should be to give users the access required to do their jobs rather than providing everyone unrestricted access to every system.

4. Run a Remote Desktop Server on a VPS

A VPS can be used as a remote desktop server that employees connect to from their computers or other devices. Instead of installing and maintaining certain applications on every employee’s device, businesses can provide access to a centralized Windows environment hosted on a compatible VPS.

This arrangement is often called Remote Desktop Protocol (RDP) when Microsoft’s Remote Desktop technology is involved. In simple terms, the employee’s computer acts as the screen, keyboard, and mouse while much of the actual computing happens on the remote server.

Provide Employees With a Centralized Work Environment

A remote desktop server can give employees a consistent work environment with required applications, files, and configurations already set up. Employees can connect to this preconfigured environment from different locations rather than recreating the entire setup on every local device.

This can be useful when a business wants to maintain a centralized environment for specific tasks or applications. Before adopting this arrangement, evaluate licensing, security, server capacity, and access requirements.

Support Remote and Distributed Teams

If a business works with remote employees or freelancers, it may provide them with remote desktop access to a controlled environment containing the applications and resources required for their work.

Rather than giving every remote employee broad access to an office network, a properly configured remote environment can help businesses separate systems and control permissions. VPS providers such as VPSMakers can be used to deploy an RDP server without requiring the business to purchase physical server infrastructure.

Remote desktop systems must still be secured carefully. Internet-facing remote access is an attractive target for attackers, making authentication, patching, network restrictions, monitoring, and appropriate security configuration particularly important.

5. Host a Business Email Server

A business can use a VPS to set up an email server and provide email services using its company domain. This gives the business control over the mail server, user accounts, storage, and email configuration.

For most small businesses, however, self-hosting email is one of the VPS uses that deserves particularly careful consideration. Running a reliable email server involves more than creating mailboxes. You need to manage security, spam filtering, DNS records, authentication, server reputation, software updates, backups, and deliverability.

For a small company without experienced server administrators, a managed business email service may therefore be simpler and less risky than operating its own mail server.

Create Custom Business Email Accounts

A business using its own company domain can create professional email addresses such as “support@company.com.” A self-hosted mail server can be configured to create individual mailboxes for employees, departments, or specific business functions.

Using a company domain for email is not unique to a VPS; hosted business email providers can provide the same functionality. The main reason to self-host is greater administrative control, not just a branded email address.

Manage Email Storage and Mailboxes

With a self-hosted email server, administrators can control mailbox sizes, storage allocation, retention policies, and user accounts. This can be useful when a business has particular requirements for how email is stored and managed.

That control must be weighed against the time and expertise required to maintain a secure, reliable mail system.

6. Create Development and Testing Environments

For businesses developing, testing, building, or updating their own applications, a VPS can provide an environment separate from the live production system. Developers can install software, test changes, and experiment with configurations without making those changes directly on the system customers or employees are currently using.

Keeping development and production environments separate can also make it easier to test updates before deployment. The exact setup will depend on the application, development workflow, security requirements, and size of the technical team.

A VPS can be particularly attractive for a small development team because it can provide a reproducible server environment without requiring the company to buy and maintain another physical machine.

7. Host Databases for Business Applications

If you are running an application that needs a database, a VPS can also be used to host that database. In some architectures, businesses separate the database from the public-facing website or application server.

That separation can reduce unnecessary exposure and make access controls easier to enforce, but it is important not to assume that putting the database on a separate VPS automatically makes it safe. If an attacker compromises an application that has legitimate database credentials, for example, the database may still be at risk. Network restrictions, authentication, encryption, updates, monitoring, backups, and application security all remain necessary.

Run MySQL, MariaDB, or PostgreSQL

You can install database systems such as MySQL, MariaDB, or PostgreSQL on a VPS and configure them according to your application’s requirements.

For WordPress specifically, the platform officially uses MySQL or MariaDB. WordPress’s documentation explains the database requirements for WordPress installations. Other business applications may use PostgreSQL or another database platform depending on how they were developed.

Control Database Access and Permissions

Database access can be restricted to specific applications, users, or networks. This helps reduce unnecessary exposure and prevents services that do not need direct database access from receiving it.

This reflects a broader cybersecurity principle: users, applications, and vendors should generally receive only the access they need. The FTC recommends restricting sensitive database access on a need-to-know basis and using properly configured encryption to protect sensitive information.

8. Automate Repetitive Business Tasks

A VPS can run automated tasks that would otherwise need to be performed manually or require another computer to remain powered on. Depending on your business and applications, this might include generating reports, processing data, sending system notifications, transferring files, or performing routine maintenance.

Because a VPS normally runs continuously, automated jobs can execute even when an employee’s laptop is turned off. That makes the server useful as a central place for recurring background processes.

Run Scheduled Scripts and Tasks

Using tools such as cron jobs on Linux-based systems, businesses can schedule scripts to run automatically at specific times or intervals. Windows servers provide their own scheduling tools for similar purposes.

Scheduled jobs can be useful for recurring reports, data processing, cleanup tasks, backups, data synchronization, and other routine operations. Automated tasks should still be monitored because a script that fails silently—or continues running incorrectly—can create its own business problems.

9. Set Up Private File Storage

You can also configure a VPS as centralized file storage. Employees in different locations can access authorized documents while administrators control accounts, permissions, and storage.

The original concept of running an FTP server deserves an important update: businesses handling sensitive information should avoid relying on traditional unencrypted FTP. Secure file-transfer methods and encrypted connections are preferable when information is moving across the internet.

Store and Share Business Files

Businesses can use server storage for documents, project files, backups, and other data and provide authorized employees with access to the files they need.

A VPS, however, should not be your only copy of important business data. Server failures, accidental deletion, ransomware, configuration errors, or account problems can still result in data loss. NIST recommends regularly backing up business data and protecting and testing those backups, while the FTC similarly recommends making regular backups part of routine business operations.

If the files are critical to keeping your company running, develop a backup and recovery plan rather than treating the VPS itself as the backup.

10. Host APIs and Backend Services

A VPS can run the backend components that support websites, mobile applications, and other business software. These can include APIs, application servers, and services that process requests or communicate with databases.

An API, or Application Programming Interface, is essentially a structured way for two pieces of software to communicate. For example, a customer-facing website might send information through an API to a backend application that checks inventory, processes a request, or retrieves information from a database.

Run APIs for Websites and Applications

Businesses can deploy APIs on a VPS so websites, mobile applications, and other systems can communicate with backend services and databases.

This can help companies develop their own applications or connect a customer-facing service to internal systems. As with any internet-accessible service, APIs need appropriate authentication, access controls, updates, and monitoring.

Connect Different Business Systems

APIs can also be used to connect different business applications. For example, information submitted through one system might trigger an action in another system rather than requiring an employee to manually copy the information from one application to another.

For a growing company, this type of integration can reduce repetitive work and help different pieces of the company’s technology infrastructure work together.

VPS vs. Shared Hosting: Does Your Small Business Actually Need One?

The fact that a VPS can do all these things doesn’t mean your business necessarily needs one.

If you have a basic informational website, modest traffic, no custom server requirements, and no applications that need a dedicated environment, good shared or managed hosting may be perfectly adequate. It also lets the hosting company handle much of the server administration.

A VPS makes more sense when you need greater control over server configuration, predictable resources, custom software, development environments, remote desktops, private networking, application hosting, or backend services that ordinary shared hosting cannot accommodate.

There is also an important distinction between a managed VPS and an unmanaged VPS. With an unmanaged server, your company—or someone you hire—is generally responsible for substantially more of the server administration. A managed VPS costs more but can shift some of that technical work to the provider. Small business owners should ask exactly what “managed” includes, because services vary by provider.

What Are the Risks of Using a VPS?

The greatest misconception about a VPS may be that moving something to a private virtual environment automatically makes it secure. It doesn’t.

A VPS is infrastructure. Its security depends heavily on how it is configured and maintained. Operating systems and applications need security updates. Administrative accounts need strong authentication. Unnecessary services should be disabled. Sensitive data may need encryption. Access should be restricted, activity monitored, and critical information backed up somewhere other than the server itself.

NIST describes cybersecurity as a continuous process rather than something a business sets up once and forgets. Its small-business guidance recommends measures including multi-factor authentication, strong passwords, regular backups, software updates, and testing backup procedures.

The FTC similarly emphasizes that cybercriminals target companies of all sizes and recommends that small businesses incorporate cybersecurity into their normal operations. That matters even more when your company takes on responsibility for administering its own server.

How to Choose the Right VPS for Your Business

The right VPS configuration depends largely on the workload you plan to run. When choosing a VPS plan, consider resources such as RAM, CPU, and storage. If you plan to run file storage services or applications that handle substantial traffic, you should also pay attention to bandwidth, data-transfer limits, and network performance.

Location is another factor. Instead of simply choosing the most popular server location, consider where your employees, applications, and customers are located. The nearest location is not always automatically the best choice; connection quality, latency, reliability, and the infrastructure connecting users to the data center can also affect performance.

Beyond specifications, small businesses should ask several practical questions before buying. Who will maintain the server? Does the provider offer managed administration? How are backups handled, and are they stored separately? What uptime commitment does the provider make? How quickly can resources be increased? What security features are available? What support is included, and what happens when something breaks at 2 a.m.?

The FTC’s cybersecurity guidance also recommends assessing the cybersecurity risks presented by suppliers and other third parties before entering formal relationships. Your hosting company is an important technology vendor, so its security practices, support, reliability, and backup policies deserve as much attention as the advertised CPU and RAM.

The Bottom Line

A VPS sits between simple shared hosting and maintaining your own physical server infrastructure. For a small business, its biggest advantage is flexibility: the same type of virtual environment can host a growing website, custom application, development environment, database, VPN, remote desktop, file service, or automated backend process.

But flexibility shouldn’t be confused with simplicity. A VPS gives you more control precisely because someone has to make more decisions about how the server is configured, maintained, secured, monitored, and backed up. For technically capable businesses, that control can be extremely useful. For businesses that simply need a reliable website or email service, a managed solution may still be the easier and more economical choice.

The best question, therefore, isn’t simply “Should my business get a VPS?” It is “What problem are we trying to solve, and is a VPS the simplest, safest, and most cost-effective way to solve it?” Once you can answer that question, choosing between shared hosting, a managed VPS, an unmanaged VPS, or another cloud service becomes much easier.

Frequently Asked Questions