Why a VPS (virtual private server)?
VPS are a cheap and efficient way of owning a server without having to maintain the physical hardware, infrastructure and costs involved when renting server space. You can purchase a new VPS from most providers and within 15 minutes you can be installing your software and services. A VPS is just like owning a physical server you can install and do what you want with it.
I rent a number of VPS across the world each in the region of £5 to £25 per month, this allows me to setup various services such as reliable DNS infrastructure and proxies for viewing website performances for SEO purposes. To have the setup I am using with out VPS would cost me thousands to purchase each server plus a data center collocation charge of around £70 per server per month. Not to mention the costs of any hardware failures I would need to pay for.
In my scenario it was a no brainier. £60 per month for a bunch of VPS across the globe or £420 per month for a bunch of physical servers across the world plus a setup fee to purchase all the hardware and delivery to the data center in the region of £1500, these would all be budged server specs. Most people pay around £1500 per server not for 6.
There is always situations where a physical server would be recommended instead of a VPS, but in my case VPS are perfect and without this technology I believe I would struggle to host the various services / infrastructures I currently use and rely upon.