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Why AMD and Intel VPS Cost More Than ARM-Based VPS

Why AMD and Intel VPS Cost More Than ARM-Based VPS

When comparing VPS options, you might notice a difference in pricing. Often, AMD and Intel VPS are priced higher than ARM-based VPS. Why is that? Let’s delve in.

Understanding the Players

  • AMD: Known for its EPYC 7763 and other processors, AMD is a key competitor in the server market.
  • Intel: Their Xeon Platinum 8380H12 and related models have dominated data centers for years.
  • ARM: An emerging contender, with solutions like the Ampere Altra Max, offering a fresh approach to processing.

Production and Licensing

Firstly, ARM doesn’t manufacture chips. Instead, they design architectures and license them. This approach means manufacturers can produce these designs cost-effectively. AMD and Intel, on the other hand, design and manufacture their processors. This dual role can drive up costs.

Energy Efficiency

ARM chips, designed originally for mobile devices, use less power. So, they save on electricity and cooling. In contrast, powerful processors like AMD’s EPYC 7282 or Intel’s Xeon often consume more energy, leading to higher operational costs.

Flexibility in Design

Because ARM licenses its designs, manufacturers can tweak them. This adaptability can lead to reduced production costs. In contrast, AMD and Intel maintain strict control over their designs.

Server Integration

Servers using ARM, like the Ampere, are a newer phenomenon. Their adoption drives down costs due to the fresh competition. However, established reputations of AMD’s and Intel’s processors, like the EPYC 7282 and Xeon E5 2630v4, mean they can command higher prices.

Performance and Operating System Support: AMD, Intel, and ARM

When evaluating the cost difference, understanding the performance and operating system compatibility is also essential.


  • AMD & Intel: Historically, these giants have dominated the server realm with their x86-based processors. Their CPUs are designed for intensive tasks and often offer higher clock speeds, more cache, and advanced technologies tailored for data-heavy applications and multitasking. They use different microarchitectures to optimize their performance and features, such as Zen for AMD and Skylake for Intel. Some of their latest and fastest server CPUs are the AMD EPYC 7763 and the Intel Xeon Platinum 8380H12.
  • ARM: Originally crafted for mobile devices, ARM processors prioritize energy efficiency. ARM is a designer and licensor of core components for chips, such as the instruction set architecture, the microarchitecture, and the physical design. There are many companies that use ARM’s designs to make their own chips for various purposes, such as smartphones, tablets, laptops, servers, etc. Some of these companies are Apple, Samsung, Qualcomm, Amazon, Ampere, and Marvell. With the evolution of ARM designs, their performance has significantly improved. For example, the Ampere Altra Max processor has 128 cores and can run at 3.0 GHz, outperforming the AMD EPYC 7763 processor in some workloads. However, ARM processors still face some challenges in matching the raw power of high-end AMD or Intel CPUs, especially in memory-intensive applications. For instance, the AMD EPYC 7763 processor has a larger L3 cache and supports more memory per socket than the Ampere Altra Max processor. Therefore, depending on the task, ARM processors may offer sufficient, efficient performance, but not always the best performance.

Operating System Support:

  • AMD & Intel: Their long-standing presence means extensive OS compatibility. Most major operating systems, including variants of Linux, Windows Server, and UNIX, are optimized for AMD and Intel architectures.
  • ARM: Traditionally, ARM’s OS support was limited, mainly catering to mobile OS like Android. However, the landscape is changing. Now, many Linux distributions have ARM-compatible versions. Windows has even developed a version for ARM. As ARM’s presence in the server space grows, OS support continues to expand.

Key Takeaway:

AMD and Intel offer powerhouse performance and broad OS support, but they also consume more power and cost more than ARM. ARM is catching up with its efficient design, offering a compelling, cost-effective alternative for cloud-native applications and AI inference workloads. However, for some specific high-performance needs, such as high-end gaming or scientific computing, or some OS requirements, such as Windows 11 or VMware, AMD or Intel might still be the go-to. Always assess the exact demands of your project when choosing, as the comparison between these architectures is not static, but dynamic.

In Conclusion

While AMD and Intel VPS often come with a heftier price tag, it’s due to their integrated roles, energy use, and brand reputation. ARM’s licensing model, energy efficiency, and flexibility offer a more affordable alternative in the VPS market. It’s always crucial, however, to consider your specific needs and the performance each can deliver.

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Frequently Asked Questions

Why are AMD and Intel VPS more expensive than ARM-based VPS?

AMD and Intel have dominated the server market for years, investing heavily in advanced technologies tailored for high-performance tasks. This, combined with brand reputation, can lead to higher prices compared to ARM, which traditionally focused on mobile, energy-efficient designs.

Is ARM VPS performance inferior to AMD and Intel VPS?

Not necessarily. While AMD and Intel processors like the EPYC 7763 and Xeon Platinum 8380H12 are tailored for data-heavy applications, ARM designs like Ampere have improved significantly. For many tasks, ARM offers efficient performance.

Can I run all major operating systems on an ARM VPS?

Initially, ARM’s OS support was more limited, mainly catering to mobile systems. But now, many Linux distributions support ARM. Even Windows has an ARM version. As ARM’s server space presence grows, OS compatibility expands.

If I need high-performance VPS, should I avoid ARM?

It depends on the exact requirements. For specific high-performance needs, AMD and Intel might be more suitable due to their advanced technologies and design. However, for many general tasks, ARM can be a cost-effective and efficient option.

Which processor is more energy-efficient?

ARM processors prioritize energy efficiency, a trait inherited from their mobile device origins. Although AMD and Intel have made strides in energy efficiency, ARM still often has the edge in this area.

What makes AMD and Intel processors stand out for server tasks?

Their processors are designed for intensive tasks, boasting higher clock speeds, more cache, and technologies tailored for multitasking and data-heavy applications.

Is the software compatibility the same across all these processors?

No. While AMD and Intel have extensive software compatibility due to their long-standing market presence, ARM is still growing in this area. However, the gap is closing as ARM’s server usage increases.

Is ARM’s rise in the server space a recent phenomenon?

Yes, ARM’s significant presence in servers is relatively recent. Their designs have evolved to cater to server tasks, leading to enhanced performance and broadening OS support.

Will ARM eventually match AMD and Intel in performance?

While it’s hard to predict the future, ARM’s progression indicates a promising trajectory. As technology evolves, the distinctions between these architectures might lessen.

Which processor should I choose for my VPS?

Consider your exact project demands. If you need high-performance or broad OS support, AMD or Intel might be ideal. For cost-effectiveness and energy efficiency, ARM could be a great choice. Always compare options based on your needs.

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