Virtual private server hosting (VPS) or virtual dedicated server hosting is a newer form of hosting that is fast becoming the hosting option of choice for small to mid-sized organizations. Sitting somewhere shared hosting and dedicated server hosting, VPS seeks to combine important features of dedicated hosting like better security and control with cost effectiveness of shared hosting. It is the most ideal hosting option for organizations who have outgrown shared web hosting but lack the resources or the expertise to jump directly to highly expensive dedicated server hosting.
A dedicated server means that you have sole right to the entire resources of the server. Dedicated server hosting offers maximum uptime, security and control over your website.
Virtual Private Servers is much less expensive when compared to either reseller hosted servers or dedicated servers. Dedicated server is the most expensive hosting option whereas VPS hosting makes use of economies of scale to provide best of class hardware and software solutions.