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.
You’re paying more, so there SHOULD be a minimum uptime guarantee and better server speed. Look for a host that offers 99.5% at a very minimum, although ideally, I’d rather go with someone who offers 99.9%. Search through some reviews as there are many who have put this to the test. For example, any of WHSR’s many web host reviews include an uptime record as one of our key tests.
Most VPS hosts only offer servers running Linux-based operating systems; you'll need to dig a bit to find Windows-based VPS hosting. This is important to note if you're planning on running software that requires a Microsoft-compatible environment. That said, Linux-based VPS hosting will save you a few bucks; Linux servers usually cost $10 to $20 less than Windows servers.
A great advantage of VPS, compared to both shared and dedicated solutions is snapshot technology support. A snapshot is a state of a system at a certain point in time. It works like game saves in your favorite computer game. If a game is not going well, you can exit and start from a checkpoint. A snapshot works the same way; if you need to go back in time, your system can be restored from a snapshot to its previous state. It is extremely useful in case of a system failure or simply if you run complex tests and wish to save your progress. Unlike a backup option that copies the whole system each time you run it, a snapshot contains only changes. This means that a snapshot takes less space than a backup and can be created/restored quicker. It does not mean that you do not need backups though. Backups are still life-savers in case of operating system failure. Don’t forget to store them externally.
Now, you can maintain a high level of anonymity by paying for VPS through bitcoins.
VPS hosting is like you are living in an apartment complex. It means that other people are living in the same building, but you have your own secure apartment. You will get more room and restrictions will be fewer as compared to living in a dorm. It also means that if your neighbour is misbehaving, it is the problem of owner of building, not yours.
Essentially, here’s the criteria I would use to judge things – if your site is made up of primarily static, HTML-based content, then you probably don’t need a VPS package. However, if you have a large amount of files stored, multiple sites, dynamic content, and the possibility of major traffic from time to time, then you might consider upgrading to a VPS. It’s a powerful package that allows you to do more than you could with a shared hosting plan, but requires less investment than a dedicated server.