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You can also create "Sub-servers" and "Alias" servers. Alias servers are useful if for example you have both a ".com" and a ".co.uk" domain - website visitors and mail users can use either domain and will see the same website or reach the same mailbox. Sub-servers are useful if one administrator is managing several different sites - if they all have the same owner then there's no need to log in and out to move between them.
Shared hosting usually works for small to medium web sites. A shared host may be less costly, but it does not allow total control over the hosting environment. A shared host does not permit the use of different operating systems or the installation of custom software. It may be true many web site owners are not interested in the administration of a server and prefer leaving it to their host. However, it is ideal if a web site owner desires more control and needs new software that is not available in a shared web hosting environment. When looking for VPS hosting, one should look at the resources needed, the upgrade process, the application requirements and the number of accounts needed on each server to determine the appropriate amount of resources for a VPS. The cost should be reasonable for what is offered.
The most obvious and popular reason for a VPS is to run a single website, or multiple websites. However, you can use them for pretty much anything that requires access to the internet – such as a web application like Nextcloud to run your own Dropbox alternative – or to create your own virtual private network to better secure the internet connection of your PCs and mobile devices.