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The best way to host a cloud platform is on bare metal servers, not on a VPS.

Recommended setup

Bare metal servers → Hypervisor/cloud software → VMs/containers → users/apps

Why bare metal is best

• Full control over hardware
• Better performance
• Supports nested virtualization properly
• More reliable networking and storage
• Better for production workloads
• Easier to sell VPS/cloud services from it

Good cloud platform options

For learning or small private cloud:

• Proxmox VE
• OpenStack
• Apache CloudStack
• Kubernetes for container-based cloud apps

For production:

• Multiple bare metal servers
• Redundant storage
• Dedicated networking
• Backup system
• Monitoring
• Firewall/security setup
• Cloud management software like OpenStack, CloudStack, or Proxmox

Simple recommendation

Use:

Bare metal server + Proxmox if you want an easier private cloud.

Use:

Multiple bare metal servers + OpenStack/CloudStack if you want a larger cloud platform like a real cloud provider.

A VPS is okay only for learning or testing, not for serious cloud hosting.

Yes — a cloud platform can be installed on a VPS, but usually only in a small, limited, or learning/testing setup.

For example, you can install tools like:

• OpenStack
• CloudStack
• Proxmox
• Kubernetes
• MicroCloud / MicroK8s

But there is an important difference:

A VPS is already a virtual server running on someone else’s physical server. So if you install a cloud platform on a VPS, you are building a cloud environment inside a virtual machine.

This is called nested virtualization.

Simple view

Physical server
→ Hypervisor
→ VPS
→ Your cloud platform
→ VMs / containers / services

It works best for

• Learning cloud concepts
• Testing cloud software
• Running containers
• Small lab environments
• Building demos

It is not ideal for

• Serious production cloud hosting
• Running many virtual machines
• High-performance workloads
• Selling VPS/cloud services
• Heavy storage or networking workloads

Why?

Because many VPS providers do not support nested virtualization, and performance can be slower since everything is already virtualized.

For a real cloud platform, bare metal servers are usually better.

A cloud platform is an online service that gives you computing resources over the internet, such as:

• Servers
• Storage
• Databases
• Networking
• Security tools
• AI/ML services
• App hosting

Instead of buying and managing your own physical servers, you rent resources from a cloud provider.

Simple example

Think of a cloud platform like an electricity provider.

You do not build your own power plant. You use electricity when you need it and pay for what you use.

Similarly, with a cloud platform, you use computing power when needed and pay based on usage.

Popular cloud platforms

• AWS
• Microsoft Azure
• Google Cloud Platform
• IBM Cloud
• Oracle Cloud

What you can do on a cloud platform

• Host websites and apps
• Store files and backups
• Run virtual servers
• Manage databases
• Deploy AI models
• Build scalable software systems

In one sentence

A cloud platform lets you access and manage computing resources online without owning the physical infrastructure.

A hypervisor is software that creates and manages virtual machines (VMs) on a physical server.

It sits between the hardware and the virtual servers, sharing the physical server’s CPU, RAM, storage, and network across multiple VMs.

Simple example

Think of one physical server as an apartment building.

• Physical server = the building
• Hypervisor = the building manager
• Virtual machines / VPSs = separate apartments

The hypervisor makes sure each VM gets its own resources and stays isolated from the others.

What a hypervisor does

• Creates virtual machines
• Allocates CPU, RAM, storage, and networking
• Keeps VMs isolated from each other
• Lets multiple operating systems run on one physical machine
• Helps move, pause, start, or stop VMs

Types of hypervisors

Type	Meaning	Example
Type 1	Runs directly on physical hardware	VMware ESXi, Microsoft Hyper-V, KVM
Type 2	Runs inside an existing operating system	VirtualBox, VMware Workstation

In VPS hosting

A VPS exists because a hypervisor divides one physical server into multiple private virtual servers.