There are several differences in the features of reseller server plans and VPS servers. Reseller server plans are designed for those who intend to do become a hosting provider and for those who want to have a secondary business alternative like web designers, web developers and other professionals. It is a cost-effective way of web hosting that lets you create hosting plans for your clients.
You can give them control panels for them to manage their individual accounts. You as a reseller are expected to provide total support to your clients in similar way that you expect from your host. Reseller plans are suitable for small websites that do not require much of non-standard applications. It offers a low cost hosting option for those who want to start web hosting business.
But if you are looking for customization and flexible configurable hosting, you can consider VPS server as an ideal alternative. In VPS you are allocated dedicated resources like CPU and RAM and provides you more power and flexibility than a reseller server does. VPS is an affordable alternative for a growing business to the dedicated server. The clients have control over the server and have the isolated privacy that a business looks for.
The choice between reseller servers and VPS depends on the kind of business you are running. If you are planning to start a reseller business to augment your existing earnings, reseller virtual servers are a logical choice.
On the other hand, if you have an established business and have started to gain more traffic, and your current shared hosting solution is unable to handle it, a transition to a VPS would be recommended.
So, all in all, both the hosting solutions cater to a different set of users. You can start with VPS hosting and later on switch to cloud server reseller hosting if you change the niche of your business.