VPS vs Managed Services: You Probably Don't Need That $5,000 Server Bill

A $5,000 server bill sounds alarming -- until you realize most of that cost is not compute. It is everything around the compute. For the types of projects most people are building, a $5 VPS can handle the job. The question is whether the convenience of managed services is worth the premium.

The $5 VPS Setup

The setup is ridiculously simple. All you need is three things on one box: an app server, a database server running something like Postgres, and Nginx in front of all of it. That all fits on a single VPS, and most people will never need more than this for the projects they are building.

What You're Actually Paying For

With managed services, you are paying for everything around the compute -- backups, monitoring, SSL, auto-scaling. All of this stuff gets handled for you. That is where the cost lives, not in the raw computing power.

When to Choose Each

The decision comes down to what you value more: money or time.

Pick a VPS if you want to save money and do not mind doing a little more work. A VPS is a great option for anyone comfortable managing their own infrastructure.

Pick managed services if you want to ship stuff, get new features out as quickly as possible, or you do not want to worry about infrastructure. But you are going to pay for it.

Key Takeaways

• A $5 VPS running Nginx, an app server, and Postgres can handle most projects
• Managed service costs come from the surrounding services (backups, monitoring, SSL, auto-scaling), not compute
• Choose a VPS when you want to save money and can manage infrastructure yourself
• Choose managed when speed of shipping matters more than cost
• Most developers overestimate what they need from their hosting setup

Resources

• @arjay_mccandless on TikTok -- Arjay McCandless on coding and software engineering