In order to gain a better understanding of this popular hosting option, you need to first understand dedicated server hosting and what a VPS actually is. Dedicated servers provide many benefits, such as security, privacy, and a range of dedicated resources. With a dedicated server, there’s no competing with other websites for storage space, bandwidth, and speed. It truly is ideal for dynamic websites or any large enterprise-level site with hundreds or thousands of daily visitors.

A VPS runs its own copy of an operating system (OS), and customers may have superuser-level access to that operating system instance, so they can install almost any software that runs on that OS. For many purposes they are functionally equivalent to a dedicated physical server, and being software-defined, are able to be much more easily created and configured. They are priced much lower than an equivalent physical server. However, as they share the underlying physical hardware with other VPSes, performance may be lower, depending on the workload of any other executing virtual machines.[1]