The Hidden Cost of Hosting a VPS
Hosting on a VPS is often seen as the cheapest option for developers and Indie Hackers. But what about the hidden costs? Let’s dive into what you’re really paying when you choose to host on a VPS – and why the cheapest option isn’t always the smartest.
- 4 min read
The Hidden Cost of Hosting a VPS
Hosting on a VPS is often seen as the cheapest option for developers and Indie Hackers. And yes, in terms of raw numbers, VPS providers like Hetzner, Linode, and DigitalOcean offer competitive prices compared to managed hosting solutions.
But what about the hidden costs? And what about the other extreme – platforms like Vercel and Netlify? Let’s dive into what you’re really paying when you choose to host on a VPS, and how to find the right balance.
Opportunity Cost: Time Is Money
When you host on a VPS, you’re not just paying for the server itself. You’re also paying in time – time spent configuring, securing, and maintaining that server.
Example Calculation
Let’s say you’re building a SaaS product. To host it, you choose a VPS that costs $10 per month. Sounds great, right?
But here’s what you might spend time on:
- Setting up the server: 2–3 hours.
- Configuring security (e.g., firewalls, SSL certificates): 2 hours.
- Installing and configuring software (e.g., Docker, databases): 3–4 hours.
- Ongoing maintenance (updates, monitoring): 2 hours per month.
Now, let’s put a value on your time. If your hourly rate as a developer is $50, here’s the real cost of that $10 VPS:
| Task | Time Spent | Cost (@ $50/hour) |
|---|---|---|
| Initial Setup | 7–9 hours | $350–$450 |
| Monthly Maintenance | 2 hours | $100 |
Total for the first month: $460–$550.
Suddenly, that $10 VPS isn’t so cheap anymore.
The Other Extreme: Platforms Like Vercel and Netlify
On the other hand, platforms like Vercel and Netlify promise to take all the hassle out of hosting. With their simple interfaces and “zero-DevOps” approach, they seem like a dream for Indie Hackers.
But there’s a catch:
- High costs at scale: While these platforms often start with generous free tiers, costs can escalate quickly as your project grows. For example, increased traffic or additional team members can push you into pricing tiers that become unsustainable.
- Limited flexibility: These platforms are designed for specific use cases (e.g., frontend apps) and may not support your backend, database, or other custom needs.
“But Vercel is free!”
That’s true – if your project is small. But most Indie Hackers aim to grow their projects, and that’s where these platforms can become a financial drain. Planning for scalability early can save you headaches later.
If You Absolutely Cannot Spare Any Dollar
For those on a shoestring budget, where spending even a few dollars per month isn’t an option, there are two main choices:
- Use Vercel or Netlify: Stick to their free tiers, but be prepared for limitations in features and traffic thresholds. This works fine for small, personal projects that won’t scale anytime soon.
- Go with a VPS: VPS hosting is the cheapest raw option, but it comes with risks:
- Security vulnerabilities: Without proper configuration, your VPS could be vulnerable to attacks. Many bots automatically scan for open ports and unpatched servers.
- Data loss: Unless you set up automated backups, a single mistake (or hardware failure) could lead to irreversible data loss.
- Time-intensive troubleshooting: Issues like server crashes or performance bottlenecks require manual intervention, pulling you away from building your product.
“But Learning Kubernetes Is Valuable!”
A common argument for managing your own VPS is:
“By doing it myself, I’ll learn valuable skills like Kubernetes, Docker, and server management.”
And while that’s true, the value of learning these skills depends on your goals.
- If your goal is to become a DevOps expert or work on infrastructure professionally, then managing your own servers is a great learning experience.
- If your goal is to launch a product quickly and serve your users, spending weeks learning Kubernetes might not be the best use of your time.
Focus on What Matters
Think of it like this:
- A chef doesn’t need to build an oven to cook great food.
- A musician doesn’t need to build a guitar to make great music.
As an Indie Hacker, your value comes from the problems you solve for your users, not the infrastructure you manage behind the scenes.
Finding the Right Balance
This is where platforms like IndieCloud come in – offering a middle ground between the complexity of self-hosting on a VPS and the high costs or limitations of platforms like Vercel and Netlify.
- Predictable costs: IndieCloud offers a simple pricing model without surprise bills.
- Flexibility: Host both frontend and backend apps, with managed Postgres support.
- Ease of use: Deployment is as simple as connecting your GitHub repo and clicking “Deploy.”
IndieCloud allows you to focus on building your product while avoiding the pitfalls of both extremes.
Conclusion: Don’t Let Hosting Slow You Down
Whether you’re considering a VPS, Vercel, or something in between, it’s important to think beyond the sticker price. The real cost of hosting includes your time, scalability, and long-term flexibility.
If you’re tired of managing servers but don’t want to overpay for hosting, platforms like IndieCloud can help you focus on what matters: building your product and serving your users.
What’s been your experience with hosting? Let me know in the comments!
P.S. Curious about IndieCloud? Check out the platform and join the waitlist.