VPS hosting costs less and offers more flexibility than dedicated hosting, but semi-dedicated and dedicated hosting services offer more resources. VPS gives greater independence than semi-dedicated hosting though, because once again, the virtual servers on a single computer have no effect on each other and they are almost as reliable as a dedicated server.
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A virtual private server (VPS) is a cost-effective way for a small business to gain more flexibility and efficiency than is offered with shared hosting without the expense associated with running a dedicated server. Most small businesses also don’t need all the power of a dedicated server, so VPS provides a good in-between option when you outgrow your shared hosting. Get the power and flexibility of your own server without the cost and complexity of managing outsourced hardware.
In answering this question, maybe it’s better to examine how VPS hosting fits in to the overall offerings of most hosting companies. Shared hosting is just that – your site is hosted on a machine with a bunch of other sites, and each of you share the same resources, including RAM, disk space, and CPU. Your site uses what it needs if it’s available, and if it’s not – well, that’s the limitation of shared hosting. Likewise, a dedicated server is also self-explanatory – your site is the only one hosted on server, and you have all the aforementioned resources available at your beck and call. Dedicated hosting is therefore for those large sites with big databases and lots of traffic, whereas the limitations of shared hosting’s usually prevent it from housing that kind of site. Dedicated servers are also relatively expensive, while one can get a shared hosting plan for under $10 per month.