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Lots of Indian friends of mine need small to medium size VPS for various hosting needs - putting a personal project, or hosting business site, or site of their clients and prefer a VPS rather than shared hosting. And they alway ask which genre to choose: OpenVZ or KVM VPS?
_Here's a short guide to differentiate: _
OpenVZ: OpenVZ VPS do not have fully guaranteed resources. Instead, resources are shared with other VPS on the same physical server, with each VPS having individual limitations for how much memory, bandwidth, CPU, and disk space can be used. The lack of fully guaranteed resources is not an issue for most users, but it is important to note that OpenVZ VPS can be oversold. The other limitation to sharing a kernel is that custom kernel modules cannot always be enabled due to the shared OpenVZ Kernel.
KVM: KVM VPS cannot be readily oversold. Overselling is still possible with KVM, but there are hard limitations in place that make this practice difficult. The resources that are allocated to a KVM VPS are fully allocated, and they cannot be used for other servers. With a KVM VPS, the user can do whatever they want to the kernel within the server. In fact, it is even possible to run OpenVZ on top of KVM. (Vice-versa is not possible)
**So, Resources and Kernel is the major difference. Choose the best that suits your needs.
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