Cloud security

VPC vs. VPN vs. VPS: Understanding the differences and choosing the right solution


VPC vs. VPN vs. VPS

Summary: VPC provides private cloud environments, VPN secures connections, and VPS offers dedicated servers. Learn how all three enhance security, scalability, and performance.

The world of work is increasingly virtual. This virtual world has nothing to do with the Metaverse. Virtual security and hosting tools are boosting security, improving performance, and lowering costs worldwide.

This article will look at three critical virtualization technologies: virtual private clouds (VPC), virtual private networks (VPNs), and virtual private servers (VPS).

All three technologies go beyond legacy systems, delivering significant advantages to modern companies. But businesses need to use them correctly. Let's explore what each virtual tech offers and how they work together to improve security and productivity.

What is VPC and how does it work?

VPC stands for "virtual private cloud." A virtual private cloud is a cloud environment designed for use by a single organization.

VPCs reside on standard cloud services. However, cloud vendors use logical segmentation and access controls to create a watertight barrier between public and private cloud resources.

VPCs are like private offices on the cloud, secured by multiple locks and entrance protections. Users following VPC best practices enjoy many benefits compared with standard cloud computing features.

How VPC works

VPCs have low maintenance and installation overheads. They are easy to scale, flexible, and reliable. Cloud resources also work well with remote access workforces, making virtual workloads available wherever users are.

VPCs deliver enhanced security to complement these features. Segmentation cuts the risk of intrusion via the public cloud and limits data breach risks. Users can assign IP addresses to subnets and route tables to calibrate access controls. Encryption and firewall settings safeguard data, helping businesses meet compliance goals.

From the user's perspective, VPCs are like traditional on-premises networks. Users connect to applications, send data, and work normally. Behind the scenes, cloud technologies offer scalability, customization, and security not provided by legacy networking.

There are also similarities when we compare virtual private cloud vs. private cloud deployments. The difference is that VPCs reside on shared public cloud resources. You don't need a specific private cloud infrastructure—just part of the existing cloud. Sharing cloud space cuts costs dramatically.

What is a VPN and how does it work?

VPN stands for Virtual Private Network. VPNs route internet traffic through a private VPN server. The VPN server creates encrypted tunnels to transmit user data. They also assign anonymous IP addresses—effectively concealing network traffic from outsiders.

This technique creates a virtual network over the public internet. Users can send or receive data through their private network without exposing files and data to malicious actors.

How VPN works

VPNs also suit remote access. Employees can install VPN clients on remote devices or laptops and instantly create a VPN gateway to on-premises or cloud-hosted resources. All users need is a virtual private network client and an internet connection. There's no need for extra hardware.

What is VPS and how does it work?

VPS stands for "virtual private server." A VPS is a virtual machine installed on a physical server or group of servers. The VPS shares server space with other resources and traffic. Similarly to a partitioned portion of a physical server, users have a dedicated virtual server within that environment.

Companies often use virtual private servers for web hosting. Virtual servers offer greater security than traditional shared server space. Greater processing capacity also usually results in performance improvements.

How VPS works

VPS hosting also scales easily. Companies order additional capacity as needed, with no need to install or maintain server hardware. Virtualization also adds customization options. Users control every aspect of the server environment, including CPU and memory usage, app installations, and the operating system.

These features make VPS technology increasingly popular among small businesses with high growth potential. Small enterprises can lower operating costs, simplify their workload, and scale server capacity as their needs expand.

VPC vs. VPN vs. VPS: differences

One way of visualizing the differences is to Imagine a typical city, just like your own.

VPCs are like gated neighborhoods in the city. People can enter if they have the right credentials, but public access is blocked. VPS are homes in that community, serving local people. Finally, VPNs act like protected access roads. They ensure only the right people can approach the neighborhood and those who live there.

That’s obviously just an analogy. As we will see, things are a bit different in network environments.

VPN

  • Role: Creates a secure connection for data transfers
  • Usage: Enables users to establish secure remote connections
  • Scaling: Well-suited to individual remote access
  • Management: Users have limited configuration options
  • Adaptability: Generally limited customization, limited to basic security

VPC

  • Role: Provides private cloud capacity within the public cloud
  • Usage: Flexible and secure hosting for cloud applications
  • Scaling: Scales naturally as companies expand
  • Management: Users have extensive powers to adapt their VPC deployment
  • Adaptability: Users can toggle network configurations

VPS

  • Role: Supplies virtual machines instead of physical servers
  • Usage: Dedicated and secure server capacity without high overheads
  • Scaling: Easier to scale than traditional servers
  • Management: In-depth server control (depending on the vendor)
  • Adaptability: Plenty of configurable server settings

VPS, VPNs, and VPCs are different but inter-linked technologies. As the table above shows, they have different purposes and customization potential. Knowing how they differ makes it easier to understand how all three technologies fit into network environments.

  • VPC vs. VPN: The main difference between VPCs and VPNs is that VPNs create secure network connections over the public internet. VPCs enclose resources in a private domain with a larger cloud environment. We can use VPNs to safely access VPCs without exposing data.
  • VPC vs. VPS: The main difference between VPCs and VPS is that VPCs host cloud resources and use the cloud vendor's server resources. VPSs are virtualized servers. They provide dedicated server resources for clients, often within VPC environments. Users can also combine multiple VPS within a VPC.
  • VPN vs. VPS: The main difference between VPNs and VPS is that VPNs enable secure access to cloud resources or the public internet. VPSs are used to host resources, including public-facing websites, databases, or remote access workloads. VPNs help secure access to VPS and VPC deployments.

What features are shared by VPN, VPC, and VPS technologies?

The functions of VPNs, VPCs, and VPS differ, but the technologies often work together in secure cloud computing systems. As such, they share features that characterize cloud resources in general.

As the "V" suggests, all three technologies use forms of virtualization to carry out their duties. Virtualization simulates hardware or software. Resources reside on shared infrastructure, providing dedicated virtual security or hosting services.

Virtualization supports flexible remote access. VPNs, VPS, and VPCs are available to globally distributed users. Users can access servers or virtual private network gateways via any internet connection. This suits remote workforces and provides flexibility for network admins.

Security is another common feature of VPNs, VPCs, and VPS technology. A VPN server uses encrypted tunnels and IP address anonymization. VPC security employs segmentation and access controls. VPSs create dedicated secure environments for server hosting.

Alongside security comes enhanced privacy. VPNs create private network gateways. Users do not share internet infrastructure when accessing sensitive data. VPCs separate business resources from the public cloud, creating private zones. VPS is similar, offering private servers with no direct connection to other shared infrastructure.

Tips on choosing the right solution

The key takeaway of this article is that we should view VPNs, VPCs, and VPS as part of a wider picture. They are different but closely related technologies. The "right" solution often involves two or three components.

The critical task is deciding when to use each technology. The table below provides some pointers. However, always consider your business needs before selecting which virtualized tools to use.

  • When you need VPC. VPCs are used to create secure environments for confidential data. With a VPC, you have complete control over access. Subnets, access control lists, and firewalls determine who can access resources. You can set privileges for different roles according to the principle of least privilege and separate data from public cloud users.

VPCs are a good option for organizations comparing a private vs public cloud solution. In that case, you could opt for expensive private cloud systems. VPC offers a secure and user-friendly middle ground that suits most modern businesses.

  • When you need a VPN. VPNs are ideal for establishing a secure remote access connection. They suit companies with large home-based workforces. A virtual private network should secure connections between many offices or work locations and also create a protected gateway between work devices and cloud endpoints.
  • When you need VPS. VPS suits companies that need dedicated server capacity without excessive expenditure. VPS cuts costs by leveraging virtualization and shared infrastructure. A virtual private server is also easier to customize than standard shared hosting, enabling bespoke deployments.

How NordLayer’s Business VPN can secure access to VPC environments

NordLayer makes it easier to secure virtual private cloud deployments. With our tools, you can create secure access systems to block unauthorized intruders and enable smooth workflows for legitimate users.

Our Business VPN enables small and medium-sized companies to create private gateways between remote workers and VPC or VPS resources. End-to-end encryption protects data flows and user credentials, allowing secure file transfers and guarding cloud endpoints.

NordLayer's site-to-site secures access to hybrid networks, including VPCs. It enables secure remote access for employees across the world.

NordLayer also enables users to enforce strong network access control policies. Our NAC solutions ensure that only authorized individuals can access VPCs. Cloud firewalls segment access by identities, while device posture security only allows access for compliant devices. Choose a simplified but powerful security solution for virtualized resources. To find out more, contact the NordLayer team today.


Senior Copywriter


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