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Maximilian Schwarzmüller

Are private servers better than Vercel?

Apr 23, 2026

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Why Private Servers Are Better Than Vercel? Analysis of the Security Incident and Choosing a VPS

Should you switch from Vercel to a VPS after the security incident? We break down cost, flexibility, security, and the role of AI.

April 23, 2026

After the Vercel security incident on April 19, a claim appeared on X and other networks that it is time to move web applications from Vercel to VPS. The same could be said of any managed hosting provider, since they all have similar advantages and disadvantages.

Below we examine whether a VPS actually provides a higher level of security and in which cases it is justified.

Security

A VPS is not a more secure option. Security remains a complex area, and when you use a VPS, responsibility for it rests entirely with the user.

The Vercel Incident

In the Vercel incident, the problem was an employee account. The vulnerability was related to how Vercel's internal operations were organized: a single compromised user or employee account could affect the entire system.

When using a managed service, security depends largely on the measures the provider implements.

Responsibility When Using a VPS

On a VPS, the user is responsible for all levels of protection. Security setup includes, for example:

  • SSH protection, so that outsiders cannot connect to the server;
  • automatic package updates, so that software stays up to date to the extent that automation allows.

However, these measures do not cover everything. Vulnerabilities appear in many components of the system that runs a web application.

Example: React Server Components Vulnerabilities

Last year, vulnerabilities were discovered in React Server Components. One specific vulnerability allowed attackers to gain control of a machine and execute code on it.

The only way to protect against this was to promptly install the update released for React and Next.js. This example is not the only one: vulnerabilities can appear in any component of web infrastructure.

Protection When Using Vercel

When using Vercel, part of the protection is provided automatically by the provider. After the React Server Components vulnerability was discovered, Vercel deployed automatic protective measures through its web application firewall (WAF) service. This did not guarantee complete protection, but it added an extra layer of security, and users did not have to take any action.

Similar protection could be applied to other vulnerabilities as well.

Security Conclusion

A managed service such as Vercel usually makes security easier to maintain, although it is itself subject to vulnerabilities. Attacks like the April incident are possible in both cases. With a VPS, the entire responsibility for protection lies with the user, and this has its drawbacks.

Cost

Cost is one of the main reasons to choose a VPS.

  • Predictability. A VPS can be very affordable. For example, a VPS from Hetzner can be rented for a few dollars a month, and the payment amount remains constant.
  • Pricing of managed providers. The pricing systems of such services can be complex, and users often receive unexpected bills. Reports of charges significantly exceeding the expected amounts regularly appear.

Responsibility for such bills lies mainly with users; however, the complexity of pricing is partly a consequence of decisions by providers who are interested in keeping it that way. It is not possible to clearly divide providers into good and bad ones.

On a VPS you can run web applications that could cost tens or hundreds of dollars with a managed provider, for roughly 20 dollars a month. This difference in cost is one of the main advantages of a VPS and the most significant reason to choose it over a managed provider.

Flexibility

A VPS offers extensive configuration options, since it is essentially a computer, usually running a Linux operating system. Although you can rent a VPS with other systems, Linux remains the standard choice.

On a VPS you can:

  • install any software;
  • run any processes;
  • create users and configure the system as you see fit.

Restrictions are imposed only by some providers, which block certain ports needed for standard workflows and applications.

With managed providers, capabilities are limited to the set of features the provider supports. For example, Vercel does not support SQLite. Therefore, an application using SQLite cannot simply be built locally and deployed to Vercel without changes.

SQLite, however, is a reliable solution for many web applications. It is not a toy for development: it can be used in production, and it is easy to install, configure, and manage. On a VPS, an application using SQLite can run without additional changes.

Skill Requirements

The flexibility advantage comes at a cost: the user needs to understand Linux and be willing to learn how it works. Artificial intelligence simplifies this process by helping with VPS setup, understanding Linux commands, and composing complex command chains where the output of one command is passed to another. In the author's experience, this is now much easier than it used to be, but the need to figure out the system on your own remains.

The Simplicity of Managed Providers

With a managed provider, it is usually enough to push code to GitHub. With the right configuration, the application is automatically deployed with the new version. Rolling back to previous versions is also simple.

The price of this simplicity is limited functionality.

Comparison

CriterionVPSManaged Provider
SecurityFull responsibility lies with the userThe provider supplies part of the protection, such as a WAF
CostPredictable, for example from a few dollars per monthComplex pricing, unexpected bills are possible
FlexibilityWide capabilities, installation of any softwareLimited to the provider's features, for example no SQLite on Vercel
Skill requirementsKnowledge of Linux and willingness to learn itMinimal, deployment via GitHub
Deployment and rollbackRequires configurationSimple

Summary

The choice between a VPS and a managed provider depends on priorities:

  • A VPS suits those who value cost, predictable expenses, and flexibility. It can also be used to host web applications, run workflows, or operate AI agents such as OpenClaw. This choice requires readiness for more complex setup and knowledge of Linux.
  • A managed provider suits those who value ease of use. You pay for it with money.

If security is the primary criterion, a managed provider is preferable. A VPS is not a simpler or more secure option.

Introduction and the Video's Thesis

The author explains that the video is not about the incident itself, but about the thesis that after it, everyone should move to a VPS.

  • The Vercel security incident took place on April 19
  • The video is not about the incident itself; a link to the official security bulletin is provided in the description
  • The video discusses the claim that it is time to switch from managed hosting to a VPS
  • The author believes any managed provider has the same pros and cons as Vercel

Security: Why People Don't Choose a VPS for It

Security is not a reason to choose a VPS, since responsibility rests entirely with the user, whereas a managed service provides additional protection.

  • In the Vercel incident, the problem was a compromised employee account and an internal system configuration
  • When using a VPS, the user is themselves responsible for security
  • React Server Components vulnerabilities from last year allowed attackers to gain control of the machine and execute code
  • Protection against these vulnerabilities requires timely updating of React and Next.js packages after the patch is released
  • Vercel automatically deployed protective measures through its web application firewall
  • The author demonstrates VPS setup, SSH hardening, and automatic package updates

Cost

The main advantage of a VPS is its predictable and low cost, whereas managed providers can present unexpected bills.

  • A VPS at Hetzner costs a few dollars per month
  • Pricing from managed providers can be complex and lead to unexpected expenses
  • Applications that cost tens or hundreds of dollars on managed hosting can run on a VPS for about $20
  • The author believes providers deliberately make their pricing plans complicated because they have an incentive to do so

Flexibility

A VPS gives almost complete freedom: you can install any software, but managed platforms limit the choice of technologies.

  • A VPS is essentially a regular computer, usually running Linux
  • Some providers block certain ports
  • Vercel does not support SQLite, so an application using SQLite cannot simply be deployed to Vercel
  • The course's demo application with SQLite runs on a VPS without changes
  • The downside of a VPS is the need to be ready to learn Linux

Complexity and the Role of AI

A VPS requires knowledge and a willingness to figure out configuration, but AI significantly simplifies working with Linux and configuration.

  • Managed provider: push to GitHub, automatic deployment, simple version rollback
  • A VPS requires configuration and technical knowledge
  • AI helps with VPS configuration, understanding Linux commands, and composing complex command chains
  • The author considers using a VPS a good idea for web applications, workflows, and AI agents like OpenClaw
  • Managed providers are suitable for ease of use, but you have to pay for that ease