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With VPS Hosting, there are multiple instances of separate operating systems on a machine—thus giving you your own virtual private server. So while you still may be sharing a physical server at the data center, with your own virtual operating system, you’re able to have dedicated resources such as RAM, bandwidth, and disk space. In other words, the environment mimics having a dedicated server—at a lower cost!

Similarly, in a real dedicated server, you will pay for the entire server that is not shared with anyone else. You will get complete control over all services. Unfortunately, it is also the most expensive hosting option and needs some technical expertise to manage. It is commonly used by those who have websites with specific scenarios, most commonly extremely high traffic and tight security requirements.
So that’s it, then – a VPS is for everything in between, right? Well, yes…and no. A VPS (Virtual Private Server) is a flexible solution that falls in between shared and dedicated hosting, not only in price but also in the way it functions. Like a dedicated server, a site hosted on a VPS gets its own RAM and disk space; however, like a shared server, it uses the same processing capacity (CPU) as a certain number of other sites. So, while your site’s performance isn’t reliant on shared RAM and disk space, it is dependent on a shared processor. Moreover, the distribution of processor share varies from provider to provider.  The table below shows how most hosting companies break down the differences between shared, VPS, and dedicated hosting plans:
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