A virtual private server is the process of virtually partitioning a physical server into multiple servers so that each virtual partition runs its own operating system and possess the appearance and capabilities of running its own dedicated machine. In other words, the actual hardware server is partitioned into numerous isolated environments.
The primary reason for its fast growing popularity is that it seeks to combine the best features of both shared and dedicated hosting thereby optimizing hosting environment.
Sitting somewhere between shared and dedicated hosting, it offers the hosting customers the control and security of dedicated hosting with the affordability of shared hosting.
A dedicated server hosting as the name suggests reserves the entire server and its resources for a single website or organization.
A dedicated server means that you have sole right to the entire resources of the server. You are spared the trouble of constantly worrying about extra traffic to other websites eating up vital resources and depressing the performance of your website.
VPS occupies a middle ground between shared hosting and dedicated hosting. As in case of shared hosting, the cost of the physical server is essentially shared between the VPS\'s, the servers that are typically used in a VPS environment have greater performance capabilities and greater capacity than dedicated servers.