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!
If you host it in a VPS environment, your site won't share resources with neighboring sites, the way it would with shared hosting. In fact, your site lives in a partitioned server area that has its own operating system, storage, RAM, and monthly data transfer limits, so you can expect smoother, more stable site performance. The sites with which you share your server are far less likely to affect your site—or even take it down altogether—than they would be on a shared site. Knowing how VPS setups operate is just the first step, however. You still need to familiarize yourself with the essential features needed for building a rock-solid, VPS-hosted website.
VPS stands for Virtual Private Server and refers to a private, emulated dedicated hosting environment created through virtualization on a host (a computer or other device connected to other computers or devices via a network), server (called the “parent server”), or cluster of servers. It acts like a physical server but, in reality, it’s a piece of software that’s emulating dedicated hardware.

Of course, one of the most important factors in selecting a VPS is the cost attached to it. VPS providers will charge more for managed hosting and for using high end resources. Hence, you need to select a VPS which will not only operate effectively, but will also not cause a sizeable hole in your wallet.

Expert Overview :
“Elastic” is a word that you’ll sometimes hear being used to describe VPS services. It means that it’s quick and easy to add more RAM, CPU power or HDD space if and when your site needs them. It can save you time and money because balance and efficiency are taken care of. Your extra resources are available straight away and they keep your site purring along happily at peak times. If you want to transfer your virtual server to another physical machine, then you can do so without any loss of service to your website. Since its cloud-based you benefit from greater security and stability, too.
If you are building something or trying to run an untested application, it is better to do it on a dedicated server platform. If your application cause any issues and starts affecting our physical server then we may need to suspend or shutdown your service without notice. A dedicated server is a standalone server in which you can do and test anything in it.

Yes, VPS is a powerful and versatile type of hosting that many companies will find meets their needs. If you’re already hosting in a different type of environment, you may be wondering whether it’s worthwhile to migrate to VPS. This is an important discussion to have with each prospective hosting provider in order to understand how they handle migrations, what would be required from you, how long it might take, and any costs associated.
If you are familiar with hosting control panels, shell commands, and you have basic server administration and troubleshooting skills, then unmanaged VPS is the way to go. Note that while you purchase self­ managed VPS, you should be capable of managing applications, software, services installed on your VPS. Also, you must know installation/un­installations, resource monitoring, server performance tweaking and troubleshooting of any technical issues.