OpenVZ is an OS-level virtualization technology. This means the host OS is partitioned into compartments/containers with resources assigned to each instance nested within. On our OpenVZ there are two types of resources, dedicated and vSwap A dedicated resource is one the VPS is guaranteed to get if requested. When the Guaranteed Ram limit is reached, memory pages belonging to the container are pushed to a virtual swap (vswap) space.
As it is an OS level virtualization technology, it has less overhead than in a full virtual environment. On two hosts with identical hardware and subscription rates, OpenVZ should perform better than KVM. As it doesn't have to run an additional full OS kernel, as it can share one kernel between multiple VPSes, resulting in significant memory and cpu savings. In fact, most of the kernel memory usage is not charged to the VPS at all, only what each particular vps needs in addition to the main kernel.
KVM provides for a cost effective way to host fully virtualized servers. Offering the option to host Linux or Windows, KVM is a secure, reliable, and true virtualization platform that meets the complex software environment of today.
Because KVM simulates hardware, you can run whatever kernel you like on it within reasonable limits. This means the KVM is not limited to whichever linux kernel is installed in the root node and can run most x86 operating systems like a BSD or even Windows. Having a fully isolated and independent kernel means the VPS can make kernel modifications or load its own modules. KVM platform also adds the complexity of maintaining a complete operating system.
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