KVM vs OpenVZ: Which VPS Virtualization Should You Choose?

When shopping for a VPS, you'll notice providers advertising different virtualization technologies — most commonly KVM and OpenVZ. Understanding the difference can save you from headaches down the road.

Here's everything you need to know to make the right choice.

The Quick Answer

Choose KVM in almost every case. It's the modern standard, offers better isolation, and lets you run any operating system. OpenVZ is legacy technology that most providers have abandoned.

If you're in a hurry: get a KVM VPS from Hostinger and skip the rest.

What is KVM?

KVM (Kernel-based Virtual Machine) is a full virtualization technology built into the Linux kernel. Each VPS runs its own complete operating system with a dedicated kernel.

Think of it as running a real computer inside another computer. Your VPS has no idea it's virtualized.

How it works:

• Hardware-level virtualization (uses CPU's VT-x/AMD-V)
• Each VPS has its own kernel
• Complete isolation between VPS instances
• Can run any OS (Linux, Windows, BSD, etc.)

KVM providers:

• Hostinger
• Hetzner
• Vultr
• DigitalOcean
• Linode

What is OpenVZ?

OpenVZ is container-based virtualization (not true virtualization). All VPS instances share the host's Linux kernel.

Think of it as partitioning one Linux system into isolated compartments. Efficient, but with limitations.

How it works:

• OS-level containerization
• Shared kernel between all VPS instances
• Lower overhead than full virtualization
• Linux only (no Windows, no BSD)

OpenVZ providers (increasingly rare):

• Some budget hosts still offer OpenVZ 7
• Many have migrated to KVM

KVM vs OpenVZ: Feature Comparison

Feature	KVM	OpenVZ
Virtualization Type	Full (hardware)	Container (OS-level)
Kernel	Own kernel per VPS	Shared host kernel
Operating Systems	Any (Linux, Windows, BSD)	Linux only
Kernel Modules	Load any module	Limited/none
Docker	Full support	Limited/problematic
Resource Isolation	Complete	Partial
Performance	Near-native	Near-native
Overselling Risk	Lower	Higher
Price	Slightly higher	Cheaper
Industry Standard	Yes (2026)	Legacy

Why KVM Wins for Most Users

1. Run Any Operating System

KVM lets you install any OS — Ubuntu, Debian, CentOS, Windows Server, FreeBSD, even custom ISOs. OpenVZ only runs Linux distributions that match the host kernel version.

With KVM:

• Install Windows for specific applications
• Run FreeBSD for ZFS
• Use any Linux distribution regardless of host

2. Full Docker and Container Support

If you're running Docker, Kubernetes, or any container workload, you need KVM. OpenVZ has a shared kernel that conflicts with container runtimes.

KVM + Docker = works perfectly. OpenVZ + Docker = endless headaches.

3. Better Isolation and Security

KVM provides hardware-level isolation. A vulnerability in one VPS can't affect others. With OpenVZ, all VPS instances share the kernel — a kernel exploit affects everyone.

For production workloads, this isolation matters.

4. Custom Kernel and Modules

Need to load a custom kernel module? Run a specific kernel version? Tune kernel parameters? KVM lets you do all of this. OpenVZ locks you into the host's kernel.

Examples requiring KVM:

• WireGuard (kernel module)
• Custom iptables rules
• ZFS filesystem
• Specialized networking

5. No Overselling (Usually)

OpenVZ made it easy for providers to oversell resources because of lower overhead. Many budget hosts crammed too many OpenVZ containers on one server.

KVM's higher resource requirements naturally limit density, leading to more reliable performance.

When OpenVZ Might Still Make Sense

OpenVZ isn't completely dead. It might work for:

1. Ultra-budget projects — If you find a $2/month OpenVZ VPS and just need basic hosting
2. Simple websites — Static sites or basic PHP with no containerization needs
3. Temporary testing — Quick throwaway environments

But honestly, with KVM VPS prices at $4-5/month from Hostinger or Hetzner, the savings aren't worth the limitations.

Performance Comparison

Both technologies offer near-native performance, but with different trade-offs:

CPU Performance

• OpenVZ: Slightly faster (no virtualization overhead)
• KVM: ~1-2% overhead (negligible on modern CPUs)

Memory Efficiency

• OpenVZ: Better memory utilization (shared kernel)
• KVM: Each VPS needs its own kernel in memory

I/O Performance

• OpenVZ: Direct filesystem access
• KVM: Minimal overhead with virtio drivers

In practice, you won't notice the difference. KVM's slight overhead is worth the benefits.

The Docker Problem with OpenVZ

This deserves special attention because it's a common gotcha.

Docker on OpenVZ doesn't work properly because:

1. Docker needs control over cgroups — OpenVZ manages these itself
2. Docker needs kernel features — OpenVZ restricts kernel access
3. Docker needs a compatible kernel — OpenVZ locks you to the host kernel

Some OpenVZ providers claim Docker support, but you'll hit issues:

• Containers fail to start
• Networking problems
• Volume mount issues
• Random crashes

If you plan to use Docker: get KVM. Period.

Real-World Scenarios

Scenario 1: Self-Hosting n8n

Requirement: Docker-based workflow automation Verdict: KVM required — n8n runs in Docker

Scenario 2: WordPress Site

Requirement: Apache/Nginx + PHP + MySQL Verdict: Both work, but KVM preferred for flexibility

Scenario 3: VPN Server

Requirement: WireGuard or OpenVPN Verdict: KVM required — needs kernel modules

Scenario 4: Game Server

Requirement: Minecraft, game server binaries Verdict: Both work for most games

Scenario 5: Development Environment

Requirement: Various tools, containers, testing Verdict: KVM required — you'll eventually need something OpenVZ can't do

How to Check What You're Buying

Before purchasing, verify the virtualization type:

1. Check the provider's specs page — Most now explicitly state "KVM"
2. Look for "Full Virtualization" — This means KVM or similar
3. Ask support — "Is this KVM, OpenVZ, or something else?"

After purchasing, verify with:

# Check virtualization type
sudo virt-what

# Or check for OpenVZ specifically
cat /proc/vz/veinfo 2>/dev/null && echo "OpenVZ" || echo "Not OpenVZ"

# Check kernel
uname -r  # OpenVZ shows host kernel version

Provider Recommendations

Best KVM VPS Providers

Provider	Starting Price	Why Choose
Hostinger	$4.99/mo	Best value, 8GB RAM plans
Hetzner	€4.15/mo	European quality, great network
Vultr	$5/mo	Global locations, hourly billing
DigitalOcean	$6/mo	Developer-friendly, great docs
Linode	$5/mo	Reliable, good support

Our top pick: Hostinger offers KVM VPS with 8GB RAM for under $6/month — the best price-to-performance ratio in 2026.

Avoid These (OpenVZ or Questionable)

We won't name names, but watch out for:

• Ultra-cheap hosts ($1-2/month) — often OpenVZ with overselling
• Providers that don't specify virtualization type
• "Unlimited" anything claims

Migration: OpenVZ to KVM

Stuck on OpenVZ and want to move to KVM? Here's the process:

1. Get a KVM VPS — Hostinger, Hetzner, or Vultr
2. Export your data — tar archives, database dumps
3. Set up the new server — Fresh install, configure services
4. Import data — Restore from backups
5. Test thoroughly — Before switching DNS
6. Update DNS — Point to new server
7. Cancel old VPS — After confirming everything works

It's not a direct migration — you're essentially rebuilding. But the benefits are worth it.

Summary: KVM is the Standard

In 2026, there's no good reason to choose OpenVZ for new projects:

• KVM is the industry standard
• Docker and containers require KVM
• Price difference is minimal ($1-2/month)
• Every major provider uses KVM
• OpenVZ is legacy technology

Unless you're on an extremely tight budget with simple static hosting needs, go with KVM.

Next Steps

Ready to get started with a KVM VPS?

• Best Cheap VPS — Our top KVM recommendations
• Hostinger Review — Best value KVM provider
• VPS Buying Guide 2026 — Complete decision guide
• Docker Compose VPS Guide — Set up Docker on your KVM VPS