Sometimes you need more power than an entry-level web hosting service can provide. If you're looking to take your business online and want to build your website on a server that offers more power, stability, and flexibility than shared hosting, but you don't want to pay the higher cost of dedicated hosting, VPS, or virtual private server hosting, may be the perfect middle-of-the-road service tier for your business.
Shared hosting: With shared hosting, your site is stored and served from the same physical machine as many other customers – possibly hundreds of them. All domains are drawing from the same CPU, RAM, and other resources. This type of hosting is the lowest-priced option. However, your site’s speed and reliability suffer from other users, and you don’t get root access.
Partitioning a single server to appear as multiple servers has been increasingly common on microcomputers since the launch of VMware ESX Server in 2001. The physical server typically runs a hypervisor which is tasked with creating, releasing, and managing the resources of "guest" operating systems, or virtual machines. These guest operating systems are allocated a share of resources of the physical server, typically in a manner in which the guest is not aware of any other physical resources save for those allocated to it by the hypervisor. As a VPS runs its own copy of its operating system, customers have superuser-level access to that operating system instance, and can install almost any software that runs on the OS; however, due to the number of virtualization clients typically running on a single machine, a VPS generally has limited processor time, RAM, and disk space.