Why VPS Hosting Beats Proprietary Solutions for Enterprise Apps

Here at Funcular Labs, we’ve spent over three decades in the .NET trenches—building, scaling, and maintaining enterprise applications. We’ve seen hosting trends come and go, from on-premises servers to the cloud hype of AWS and Azure. But when it comes to hosting your enterprise applications, we advocate for a solution that prioritizes flexibility, transparency, and client control: Virtual Private Server (VPS) hosting. Why? Because it empowers you—our clients—to make decisions without the hidden costs and complexities of proprietary platforms. Let’s break down why VPS hosting is often the smarter choice, and why we steer clear of solutions like Azure Websites or AWS microservices.

When you decide to seek out a provider, we’ve compiled an ➡️ overview of some of the most cost-effective VM/VPS hosting offerings.

The Allure—and Pitfalls—of Proprietary Solutions

At first glance, platforms like Azure Websites and AWS seem like a dream. Why pay for a whole server when all you need is a website or a lightweight app? They promise scalability, ease of use, and a buffet of integrated services—AI, ML, container support, you name it. And for some, that’s a win; AWS, for example, offers a user-friendly dashboard that’s great for first-time cloud adopters. But dig deeper, and the cracks start to show. These proprietary solutions often lead to unexpected costs and management headaches that can stifle your ability to adapt—or even switch providers when you need to.

One major downside is the complexity of microservices architectures often pushed by AWS and Azure. Sure, microservices can accelerate development velocity by letting teams work on smaller, independent components. But as we’ve seen in the industry, this comes at a cost. Breaking a monolithic app into microservices means you’re suddenly managing multiple services—each with its own deployment, scaling, and security needs. You might go from managing one Git repository to ten, securing ten API endpoints instead of one, and debugging across a tangled web of services when something goes wrong. Logging and tracing become a nightmare; if a container in a Kubernetes cluster fails, your logs might vanish unless you’ve set up a daemon to preserve them. Compare that to a monolith, where everything is centralized and easier to troubleshoot.

Then there’s the cost. Proprietary platforms often lock you into their ecosystem with opaque pricing models. Data egress fees on Azure can sneak up on you—transferring data out isn’t cheap. AWS might seem affordable initially, but running Windows-based services can get pricey; you’ll need to purchase separate licenses, unlike Azure’s Bring Your Own License model, which can save up to 85% on pay-as-you-go pricing. And if your app scales unexpectedly, those “pay-as-you-go” bills can balloon. Add to that the learning curve: both platforms require deep expertise to navigate their myriad services, add-ons, and settings. Do you really want your team—or a new hire—learning Azure’s Virtual Network setup or AWS’s IAM policies while managing your production environment?

Perhaps the biggest drawback is vendor lock-in. Proprietary setups like Azure Websites or AWS Elastic Beanstalk make it tough to switch providers. Their service setup processes are so intertwined with their ecosystems that migrating away feels like untangling a Gordian knot. You’re stuck—unless you’re willing to invest significant time and resources to refactor your app for another platform.

Why VPS Hosting Is the Better Choice

VPS hosting offers a refreshing alternative. With a VPS, you get a dedicated slice of a server—complete with your own CPU, RAM, and storage—without the overhead of managing a physical machine. It’s the Goldilocks solution: not as rigid as a dedicated server, but far more flexible than a proprietary cloud service. You can configure your environment exactly as needed, whether you’re running a .NET app with IIS, a SQL Server database, or a custom API. Here’s why we think it’s the right fit for enterprise applications.

First, VPS hosting gives you control. Unlike AWS or Azure, where you’re bound by their service constraints, a VPS lets you install and configure software as you see fit. Need a specific version of SQL Server for your app? Done. Want to tweak IIS settings for better performance? Go for it. You’re not at the mercy of a platform’s predefined configurations—like Azure VMs that might deploy with all ports open unless you manually secure them.

Second, it’s cost-effective and predictable. VPS providers often offer flat-rate pricing, so you know exactly what you’re paying each month. There’s no “pay-as-you-go” surprise when your app experiences a traffic spike. And because you’re not locked into a proprietary ecosystem, you can shop around for the best provider without rewriting your entire app. For example, if you’re hosting a .NET app with a SQL Server backend, you might set up a simple database on your VPS:

Third, VPS hosting simplifies scaling without the microservices baggage. Need more resources? Most providers let you upgrade your plan with a few clicks—adding CPU, RAM, or storage as needed. You don’t have to spin up a Kubernetes cluster or manage ten microservices just to handle a spike in demand. And if you ever need to switch providers, you’re not tied to a proprietary setup; your app can move with minimal refactoring.

Funcular Labs: A Better Way to Host

We’ve seen too many clients get burned by the hidden costs and complexities of proprietary platforms. That’s why, at Funcular Labs, we take a different approach—one that puts you back in the driver’s seat. We recommend VPS hosting for your enterprise apps, and we’ll handle the heavy lifting for you. Our model is simple: we configure and manage your virtual servers, taking care of the nitty-gritty details—think DNS setup, SSL certificate installation, IIS configuration, scaling calculations, and SLA explanations. We charge a transparent, minimal management fee of 20% of the plan price. That’s it. No hidden costs, no surprises.

This approach lets you focus on what matters—your application—without needing to master every provider’s learning curve (or untangle the mess of AWS’s IAM or Azure’s resource groups). We believe in empowering our clients, not locking them in. By keeping pricing clear and management straightforward, we ensure you have the flexibility to make the best decisions for your business. That’s how we’ve always treated our clients, and it’s why we think VPS hosting—paired with our expertise—is the smarter way to go.