Virtual Server vs. Physical Server: Which Is Best for Your Needs?


physical server vs. physical server

As businesses increasingly rely on technology to streamline operations and boost productivity, servers have become a critical part of their IT infrastructure. When it comes to server options, there are two main types: physical and virtual servers. 

In this article, we will explore the nuances between physical and virtual servers in detail, analyzing the various aspects of each option to help you make an informed decision for your business needs, regardless of whether you are a small business owner or managing a large data center.

What is a Server? Physical or Virtual?

When people think of servers, they often envision a room filled with humming black boxes processing data and running applications. While this image may have been accurate in the past, servers have evolved to become more diverse and complex today.

In simple terms, a server is a computer or program that facilitates communication and information sharing among other computers over a network.

Physical servers are the traditional type of servers that most people are familiar with. They are known for their reliability, robustness, and ability to handle heavy workloads. However, virtual servers have gained increasing popularity due to their flexibility, scalability, and cost-saving benefits for businesses of all sizes.

Understanding Virtual Servers

A virtual server, on the other hand, is a software-based environment that emulates all the functions of a physical server, allowing for the virtualization of resources from a physical server. 

Unlike physical servers, multiple virtual servers can be deployed on a single physical server, which is one of the key advantages of virtualization technology.

Each virtual server operates as an independent server, running its own operating system and utilizing its own allocated resources such as memory, storage, and computing components. 

To set up a virtual server, a hypervisor is installed on top of physical hardware, which can then create and manage virtual servers with their own virtual computing resources. 

Virtual servers can run multiple applications simultaneously and support multiple operating systems thanks to the hypervisor’s ability to abstract computing resources such as memory and storage and assign them to virtual machines, resulting in more efficient use of physical hardware and potential cost savings on hardware and maintenance costs.

Common examples of virtual servers include virtual private server (VPS), cloud server, hypervisor-based server, database server, web virtual server and application virtual server.

Virtual Private Server (VPS)

Understanding Physical Servers

A physical server, also known as a dedicated server, is a type of server that comes with powerful hardware components such as the motherboard, CPU, memory, hard drive, and network connection. 

These servers also run an operating system (OS) that allows them to run applications and programs without any virtualization layer between the hardware and the OS, making them commonly referred to as bare-metal servers.

Physical servers are typically larger in size and are typically kept on-site, serving as a central location for data storage, communications, and processing. Since the resources and components of physical servers cannot be shared among different digital tenants, each physical server can only serve one business.

Common types of physical dedicated servers include web servers, database servers, email servers, web proxy servers, DNS servers, FTP servers, file servers, DHCP servers, and more.

Related: What is a DHCP Server?

Understanding the Difference between Physical Servers and Virtual Servers 

Here are the key differences:


Physical servers are traditional servers that consist of hardware components such as the motherboard, CPU, memory, hard drive, and network connection.

Virtual servers are software-based environments that emulate all the functions of a physical server.


Physical servers are deployed as standalone servers and run a single operating system.

Virtual servers are deployed on top of a hypervisor that enables the creation and management of multiple virtual machines on a single physical server.

Resource Allocation:

Physical servers have a fixed allocation of resources, including CPU, memory, and storage, which cannot be easily shared among multiple servers. On the other hand, virtual servers allow for dynamic resource pooling, where resources can be allocated and shared among multiple virtual machines as needed, maximizing resource utilization and efficiency.


Physical servers have limitations in terms of scalability, as adding more servers requires purchasing additional hardware, which can be costly and time-consuming. In contrast, virtual servers offer greater scalability as additional virtual machines can be easily created on the same physical server without the need for additional hardware, making it a more cost-effective and scalable option for businesses.


Physical servers require manual management, including software updates, hardware upgrades, and maintenance tasks, which can be time-consuming and labor-intensive. In contrast, virtual servers can be managed through a central console, providing a more streamlined and efficient approach to tasks such as patch management, backups, and disaster recovery, saving time and effort for IT teams.


Physical servers are inflexible as they require dedicated hardware and cannot be easily moved or replicated. In contrast, virtual servers offer greater flexibility as virtual machines can be easily moved, replicated, and scaled up or down as needed, providing businesses with more agility and adaptability in their IT infrastructure, allowing for seamless adjustments and optimizations based on changing requirements.


Physical servers can be expensive to purchase, maintain, and upgrade, especially when additional servers are needed for scalability.

Virtual servers can be more cost-effective, as multiple virtual machines can run on a single physical server, reducing the need for additional hardware and associated costs.


Physical servers are known for their reliability and robustness, as they are built with powerful hardware components and typically have redundant systems in place to ensure uptime.

Virtual servers depend on the reliability of the underlying physical server and the hypervisor software, which may introduce some additional points of failure.


Physical servers provide a higher level of security, as they are physically located on-premises or in a data center, and access can be controlled more tightly.

Virtual servers rely on the security measures of the hypervisor and may be more vulnerable to security breaches if not properly configured and managed.


Physical servers generally offer better performance, as they have dedicated hardware resources and do not have the overhead of virtualization software.

Virtual servers may have slightly lower performance due to the virtualization layer, although advancements in virtualization technology have minimized this performance gap.

Use Cases for Physical and Virtual Servers

server data center machine

Now that we have a clear understanding of the differences between physical and virtual servers, let’s explore their ideal use cases:

Physical servers are well-suited for:

  • Businesses that require maximum performance and reliability, such as high-demand applications or critical databases.
  • Companies with strict security requirements that need to maintain physical control over their servers.
  • Organizations that have already invested in physical infrastructure and have the necessary resources and expertise to manage and maintain physical servers.

Virtual servers are ideal for:

  • Small to medium-sized businesses with limited budgets that need cost-effective solutions for their IT infrastructure.
  • Businesses that require scalability and flexibility to adapt to changing resource needs.
  • Companies that need to deploy multiple applications or test environments on a single physical server.
  • Organizations that prioritize ease of management and automation of tasks.


In conclusion, when it comes to choosing between physical and virtual servers, there are several factors to consider, including performance, scalability, cost, management, and security. 

Physical servers offer reliability, robustness, and maximum performance, but they can be more expensive and less flexible. 

On the other hand, virtual servers provide cost-effective scalability, flexibility, and ease of management, but may have slightly lower performance and security considerations. Ultimately, the decision should be based on the specific needs and requirements of your business. 

It’s recommended to consult with IT experts or a qualified IT service provider to determine the best option for your unique situation.

If you’re looking to enhance your business’s digital infrastructure, consider the advantages and disadvantages of physical and virtual servers carefully to make an informed decision. 

Whether you opt for a traditional physical server or a more flexible virtual server, having a solid understanding of the differences between the two will help you choose the right server hosting option that aligns with your business goals and IT requirements.

Frequently Asked Questions about Servers


1. What are the differences between a virtual server and a virtual machine?

A virtual server and a virtual machine (VM) are similar but have a subtle difference. A virtual server is a logical instance of a server operating system created through software virtualization, while a virtual machine is a software-based emulation of a physical computer that can run its own operating system and applications.

2. Can I host a server using a virtual machine?

Yes, it is possible to run a server on a virtual machine. In fact, you can have multiple virtual servers running on a single physical machine, with each virtual server operating as if it were a separate physical server.

The virtual servers are completely separated from each other and from the physical machine, offering benefits such as greater flexibility and resource utilization.

Virtual servers are also easier to manage, as they can be easily created, modified, or deleted without the need for physical hardware changes. For these reasons, setting up a virtual server should be considered by any enterprise as it grows.

3. What does “bare metal server” mean?

A bare metal server is a physical server that works without a virtualization layer between the hardware and the operating system. This means all of the server’s resources are used exclusively by one customer, providing top-notch performance and security that is difficult to match with virtual servers.

Bare metal servers are particularly useful for demanding applications that require a lot of processing power, such as gaming, big data processing, or streaming videos. They are also common in industries that require high data security, such as healthcare, finance, and government.

When it comes to physical servers, bare metal servers are just one type of them. Physical servers are any servers that exist as actual devices, whether that’s a bare metal server or a virtual server that runs on a physical server.

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