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Securing your Virtual Private Server is of utmost importance: it is part of your Internet life, and may well be part of your infrastructure that is absolutely mission-critical, and if it were to be compromised the ramifications could be anything from minor irritation to complete disaster.
We are not claiming that this post is a full-proof defence and will render you impervious to hacker attack, but anything you can do will certainly help, and these are useful steps.