The underlying provider failed on Open. Error in Windows Service

I have a Windows Service(c#) that receives data and inserts it into DB using Entity Framework 6. Database is SQL Server 2014 Enterprise Edition. Both (Service and DB) are hosted on VPS( Windows Server 2008 R2 with 4 GB RAM). The load on the server and service is too low, approx 60 records per minute.

Now intermittently I get the below error in Logs:

ERROR - 04-12-2014 03:31:26 926757 : Exception: The underlying provider failed on Open.
Inner Exception: System.Data.SqlClient.SqlException (0x80131904): Connection Timeout Expired.  The timeout period elapsed during the post-login phase.  The connection could have timed out while waiting for server to complete the login process and respond; Or it could have timed out while attempting to create multiple active connections.  The duration spent while attempting to connect to this server was - [Pre-Login] initialization=0; handshake=7145; [Login] initialization=0; authentication=0; [Post-Login] complete=7387;  ---> System.ComponentModel.Win32Exception (0x80004005): The wait operation timed out
   at System.Data.ProviderBase.DbConnectionPool.TryGetConnection(DbConnection owningObject, UInt32 waitForMultipleObjectsTimeout, Boolean allowCreate, Boolean onlyOneCheckConnection, DbConnectionOptions userOptions, DbConnectionInternal& connection)
   at System.Data.ProviderBase.DbConnectionPool.TryGetConnection(DbConnection owningObject, TaskCompletionSource`1 retry, DbConnectionOptions userOptions, DbConnectionInternal& connection)
   at System.Data.ProviderBase.DbConnectionFactory.TryGetConnection(DbConnection owningConnection, TaskCompletionSource`1 retry, DbConnectionOptions userOptions, DbConnectionInternal oldConnection, DbConnectionInternal& connection)
   at System.Data.ProviderBase.DbConnectionInternal.TryOpenConnectionInternal(DbConnection outerConnection, DbConnectionFactory connectionFactory, TaskCompletionSource`1 retry, DbConnectionOptions userOptions)
   at System.Data.ProviderBase.DbConnectionClosed.TryOpenConnection(DbConnection outerConnection, DbConnectionFactory connectionFactory, TaskCompletionSource`1 retry, DbConnectionOptions userOptions)
   at System.Data.SqlClient.SqlConnection.TryOpenInner(TaskCompletionSource`1 retry)
   at System.Data.SqlClient.SqlConnection.TryOpen(TaskCompletionSource`1 retry)
   at System.Data.SqlClient.SqlConnection.Open()
   at System.Data.Entity.Infrastructure.Interception.DbConnectionDispatcher.<Open>b__36(DbConnection t, DbConnectionInterceptionContext c)
   at System.Data.Entity.Infrastructure.Interception.InternalDispatcher`1.Dispatch[TTarget,TInterceptionContext](TTarget target, Action`2 operation, TInterceptionContext interceptionContext, Action`3 executing, Action`3 executed)
   at System.Data.Entity.Infrastructure.Interception.DbConnectionDispatcher.Open(DbConnection connection, DbInterceptionContext interceptionContext)
   at System.Data.Entity.Core.EntityClient.EntityConnection.<Open>b__2()
   at System.Data.Entity.SqlServer.DefaultSqlExecutionStrategy.<>c__DisplayClass1.<Execute>b__0()
   at System.Data.Entity.SqlServer.DefaultSqlExecutionStrategy.Execute[TResult](Func`1 operation)
   at System.Data.Entity.SqlServer.DefaultSqlExecutionStrategy.Execute(Action operation)
   at System.Data.Entity.Core.EntityClient.EntityConnection.Open()
ClientConnectionId:cd5f6235-1bb5-4514-a728-a08ffd6a082e
   at System.Data.Entity.Core.EntityClient.EntityConnection.Open()
   at System.Data.Entity.Core.Objects.ObjectContext.EnsureConnection(Boolean shouldMonitorTransactions)
   at System.Data.Entity.Core.Objects.ObjectContext.ExecuteInTransaction[T](Func`1 func, IDbExecutionStrategy executionStrategy, Boolean startLocalTransaction, Boolean releaseConnectionOnSuccess)
   at System.Data.Entity.Core.Objects.ObjectQuery`1.<>c__DisplayClass7.<GetResults>b__5()
   at System.Data.Entity.SqlServer.DefaultSqlExecutionStrategy.Execute[TResult](Func`1 operation)
   at System.Data.Entity.Core.Objects.ObjectQuery`1.GetResults(Nullable`1 forMergeOption)
   at System.Data.Entity.Core.Objects.ObjectQuery`1.<System.Collections.Generic.IEnumerable<T>.GetEnumerator>b__0()
   at System.Data.Entity.Internal.LazyEnumerator`1.MoveNext()
   at System.Collections.Generic.List`1..ctor(IEnumerable`1 collection)
   at System.Linq.Enumerable.ToList[TSource](IEnumerable`1 source)
   at MaestroCore.Functionality.ProcessRecData(Vehicle vehicle, ITrackLog& ll, String rcvText, WheelTrackDb db, EFunc func, ServiceUtility su, TcpServerConnection& connection)
   at MaestroCore.Functionality.myServer_OnDataAvailable(TcpServerConnection connection)

Any help regarding fixing this shall be greatly appreciated.