The current trend in Linux web server OS distributions is for extremely lightweight installation requirements and integration with containers for elastic scaling of big data applications. Rancher and CoreOS both work with Docker and Kubernetes as well as other cloud orchestration platforms like OpenStack, CloudStack, CloudFoundry, OpenShift, Mesosphere, etc. Lightweight OS installations increase the number of virtual machines that can be created on data center hardware, leading to greater efficiency in production environments.
VPS, on the other hand, is an isolated playground specifically for you. You will be able to install and use any professional software you need. It also provides more opportunities for caching the content. Imagine that you implement caching tools to provide your users with better experience and reduce the loading time of your website. Caching means that the part of requests to your website will be processed using RAM instead of a hard drive. Eventually, RAM will be filled with these requests. Since VPS deals offer more RAM then shared packages, you will get better performance using caching.
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.