A virtual server and a dedicated server differ by the number of users that possess resources on a physical server. With a virtual private server, some of the resources are isolated for individual users, but there are multiple users on the same physical server. With a dedicated server, a single user has access to all of the resources of a physical server.

I was in a similar situation about a year ago, had a managed VPS for some years before i needed a better server and had to switch to an un-managed VPS. Although i had another un-managed VPS without a control panel previously, this time round i chose an un-managed box with cPanel already installed. This was quite handy as i didn't have to deal with installing and licencing the control panel. As have always used cPanel, setting up sites, databases, DNS and all the other configurations was straight forward and fast.
VPS is a fantastic solution if your website has outgrown the space offered on a shared hosting plan, especially if you run multiple high-traffic websites. While dedicated servers are a big financial and technical investment, VPS offers an "in between" option that offers great flexibility and scope for a savvy Web developer without the hefty price tag.
While our virtual private server plans are designed to be managed with command line, you have the option to add cPanel for your VPS management! cPanel is an extremely easy to use control panel. Use it to manage everything including your files, databases, email and sites. When you add cPanel, you also have the option to add Softaculous! Use Softaculous to install today's most popular software with just a single click. Setup WordPress, Drupal, Joomla, Magento, PrestaShop and more! You'll also get automatically notified when a new version of your software is released. Easily log into your cPanel control panel, click the Softaculous icon and update your software with a single click!
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Most VPS hosts only offer servers running Linux-based operating systems; you'll need to dig a bit to find Windows-based VPS hosting. This is important to note if you're planning on running software that requires a Microsoft-compatible environment. That said, Linux-based VPS hosting will save you a few bucks; Linux servers usually cost $10 to $20 less than Windows servers.
Amazon EC2 is a web service that provides secure, resizable compute capacity in the cloud. It is designed to make web-scale cloud computing easier for developers. You can use Amazon EC2 for a variety of applications, including websites and web applications, development and test environments, and even back-up and recovery scenarios. Amazon EC2 offers a wide selection of instance types with varying combinations of CPU, memory, storage, and networking capacity that you can use to meet the unique needs of your applications.
It works quite like shared hosting, as both of them are virtual hosting. However, shared hosting does not allow to extend or modify server settings. VPS hosting is more like a dedicated physical server on a virtual platform. You can manage and set up VPS for your requirements, as it is a separate server. Also, VPS server can be operated by a control panel that can be installed with a few clicks from the client system or the terminal command line. It means that you can even choose the same control panel as it is on shared hosting.
The force driving server virtualization is similar to that which led to the development of time-sharing and multiprogramming in the past. Although the resources are still shared, as under the time-sharing model, virtualization provides a higher level of security, dependent on the type of virtualization used, as the individual virtual servers are mostly isolated from each other and may run their own full-fledged operating system which can be independently rebooted as a virtual instance.
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