Set Up Docker Compose on Your VPS: A Practical, Step-by-Step Guide

Introduction

Docker Compose simplifies the orchestration of multi-container applications by allowing you to define and run services using a single YAML file. For VPS-hosted projects—websites, APIs, CI runners, and stateful services—Compose is an efficient layer between raw Docker commands and full orchestration platforms. This article provides a practical, step-by-step guide to installing, configuring, securing, and operating Docker Compose on your VPS, with detailed examples and best practices aimed at site operators, enterprise users, and developers.

Why use Docker Compose on a VPS?

Docker Compose is particularly well-suited for single-node deployments where you need a reproducible environment without the complexity of distributed orchestration. Key advantages include:

• Declarative configuration: Define services, networks, and volumes in one file (docker-compose.yml).
• Reproducibility: Same configuration runs locally, on CI, and on your VPS.
• Fast iteration: Start/stop and scale services quickly with docker-compose up/down.
• Lower operational overhead: No need for cluster management tools when a single VPS suffices.

Prerequisites and system preparation

Before installing Docker Compose, ensure your VPS meets the following:

• OS: A Linux distribution like Ubuntu 20.04/22.04, Debian 10/11, CentOS 7/8, or Rocky/AlmaLinux.
• Kernel and packages: Up-to-date kernel and system packages. Run apt/yum/dnf update.
• Resources: At least 1–2 GB RAM for light services; 4+ GB for production workloads with databases or caching layers.
• Root or sudo access: Required to install Docker and manage systemd services.

Example commands for Ubuntu/Debian-based VPS:

sudo apt update && sudo apt upgrade -y

sudo apt install -y apt-transport-https ca-certificates curl gnupg lsb-release

Install Docker Engine

Install Docker official packages to get the latest stable engine:

curl -fsSL https://download.docker.com/linux/ubuntu/gpg | sudo gpg –dearmour -o /usr/share/keyrings/docker-archive-keyring.gpg

echo “deb [arch=$(dpkg –print-architecture) signed-by=/usr/share/keyrings/docker-archive-keyring.gpg] https://download.docker.com/linux/ubuntu $(lsb_release -cs) stable” | sudo tee /etc/apt/sources.list.d/docker.list >/dev/null

sudo apt update && sudo apt install -y docker-ce docker-ce-cli containerd.io

Enable and start Docker:

sudo systemctl enable –now docker

Add your deploy user to docker group to run docker without sudo (logout/login needed):

sudo usermod -aG docker $USER

Install Docker Compose

There are two common approaches: the standalone binary (docker-compose) or the Compose V2 plugin (docker compose). For modern deployments prefer Compose V2, which integrates as a Docker CLI plugin and gets updates via the Docker release channel.

To install the Compose V2 plugin on Linux:

mkdir -p ~/.docker/cli-plugins

curl -SL https://github.com/docker/compose/releases/download/v2.22.0/docker-compose-linux-x86_64 -o ~/.docker/cli-plugins/docker-compose

chmod +x ~/.docker/cli-plugins/docker-compose

Verify with:

docker compose version

If you prefer the legacy binary:

sudo curl -L “https://github.com/docker/compose/releases/download/1.29.2/docker-compose-$(uname -s)-$(uname -m)” -o /usr/local/bin/docker-compose

sudo chmod +x /usr/local/bin/docker-compose

docker-compose version

Core concepts and file structure

Compose operates around a YAML file that declares services, networks, and volumes. A minimal example for a web app and Postgres:

version: ‘3.8’

services:

web:

image: mycompany/webapp:latest

ports:

– “80:8080”

env_file:

– .env

volumes:

– web-data:/var/www/data

depends_on:

– db

db:

image: postgres:15

environment:

POSTGRES_DB: appdb

POSTGRES_USER: appuser

POSTGRES_PASSWORD_FILE: /run/secrets/db_password

volumes:

– db-data:/var/lib/postgresql/data

volumes:

web-data:

db-data:

Use .env files for non-secret configuration and Docker secrets (or bind-mounted files) for database passwords in production.

Persistent storage and backups

Use named volumes for container-managed persistence or bind mounts for direct host access. For databases, prefer host-mounted directories on separate block devices (LVM, dedicated partition) to simplify backups and ensure disk I/O isolation.

• Regular backups: cron job exporting dumps (pg_dump, mysqldump) into a mount bound to object storage or an offsite server.
• Volume snapshots: if your VPS provider supports filesystem or block snapshots, schedule snapshots during low-traffic windows.

Networking

Compose creates a user-defined bridge network by default. For production:

• Define explicit networks to control connectivity between services.
• Expose only necessary ports; use a reverse proxy (Nginx, Traefik) as the public-facing service and internal networks for app-to-db traffic.

Security best practices

Securing your Docker Compose deployment on a VPS involves several layers:

• Least privilege: Do not run containers as root. Use USER directive in Dockerfile or override user in compose.
• Secrets management: Use Docker secrets or bind to files under /run/secrets. Avoid embedding passwords in docker-compose.yml.
• Image provenance: Use signed images from trusted registries and pin image tags (sha256 digest) to avoid surprises.
• Resource limits: Apply cpu_shares, cpus, and mem_limit to prevent a container from starving the host.
• Liveness and healthchecks: Define healthcheck blocks so Compose can show service health and enable automatic restarts when needed.
• Host hardening: Keep the kernel and Docker runtime updated, configure a firewall (ufw/iptables) to limit exposed ports, and use fail2ban for SSH protection.

Operational workflows

Deploying a new release

Typical steps for a safe deploy:

• Build and tag images in CI, push to registry.
• SSH into VPS or use a deployment pipeline, pull new images: docker compose pull
• Run docker compose up -d –remove-orphans to apply changes without downtime for services with rolling strategies.
• Check logs and service status: docker compose logs -f; docker compose ps

Upgrades and rollbacks

Keep previous image tags around, or use a blue/green approach by spinning up a second compose project on alternate ports and switching the reverse proxy configuration. To rollback, re-deploy the previous tag and restart affected services.

Compose vs. other orchestration tools

Understanding when Compose is the right tool:

• Docker Compose: Best for single-node, small-to-medium workloads, development parity, and quick deployments on VPS. Low operational complexity.
• Docker Swarm: Adds clustering and multi-node orchestration with simpler setup than Kubernetes, but less ecosystem and scaling features.
• Kubernetes: Enterprise-grade orchestration for multi-node, high-availability, auto-scaling workloads. More complex to operate and resource-hungry—overkill for many VPS use cases.

For most VPS-hosted applications where a single server can handle the workload, Compose offers the best trade-off between simplicity and functionality.

Selecting the right VPS for Compose workloads

When choosing a VPS for Docker Compose deployments, consider the following:

• CPU & Memory: Containerized workloads behave like processes—ensure enough RAM to avoid OOM kills. For web apps + DB, 2–4 CPU cores and 4–8 GB RAM is a common starting point.
• Storage: Prefer SSD-backed block storage with IOPS guarantees for databases. Separate data volumes from OS volumes if possible.
• Network: Bandwidth and connection stability matter—especially for external APIs or user-facing services.
• Snapshots & Backups: Choose providers offering scheduled snapshots or easy backup integration.

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Troubleshooting and monitoring

Useful commands and tips:

• docker compose ps — list running services and status.
• docker compose logs -f SERVICE — stream logs for a specific service.
• docker inspect CONTAINER — inspect runtime configuration and mount points.
• docker stats — real-time resource usage for containers.
• Integrate monitoring with Prometheus + Grafana or simpler solutions like cAdvisor for container metrics.

Automate alerting for high memory, disk usage, and unhealthy containers. Also, ensure log rotation (use logging drivers or rotate host log files) to avoid filling the disk.

Conclusion

Docker Compose is an effective, pragmatic tool for running multi-container applications on a single VPS. With careful attention to persistent storage, security, resource limits, and deployment workflows, Compose delivers production-grade reliability without the complexity of full cluster orchestration. For most site owners and developers deploying on a VPS, Compose hits the sweet spot between simplicity and control.

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