VPS is short for a Virtual Private Server, which refers to the partitioning of a physical server into multiple servers. You can think of a VPS like a Dedicated Server, where you can enjoy all the components a Dedicated Server offers yet you pay a lower price. Each VPS also features its own OS (Operating System) and allows for separate rebooting. Since each OS receives a specific share of the resources from the physical server, each one is isolated from one another and cannot interfere.
The web and server hosting world is full of abbreviations that look as though they were designed to confuse inexperienced hosting clients: IaaS, PaaS, SSD, SSL, VPN, VPS, and many more. It’s especially confusing when abbreviations are similar, but mean completely different things, as is the case with VPN and VPS. I’ve often heard hosting clients say VPN when they mean VPS, and vice versa.
With our dedicated servers, you rent an entire server. This is optimal for people that have very high traffic to their websites or need to setup their server in a very specific way. Not everyone needs to have a fully dedicated web server however. If you're just getting started with your website, you can save quite a bit of money if you rent a small portion of the server. Shared hosting is when you share a portion of the server with other users rather than rent an entire server to yourself.
The concept of a virtual private server can be better explained as a virtual machine that caters to the individual needs of a user just as a separate physical computer that is dedicated to a particular user. The virtual dedicated server provides the same functionality and privacy as that of a normal physical computer. A number of virtual private servers can be installed on a single physical server with each one running its own operating system.
You can easily customize the network configuration for your Amazon VPC. For example, you can create a public-facing subnet for your web servers that has access to the Internet, and place your backend systems such as databases or application servers in a private-facing subnet with no Internet access. You can leverage multiple layers of security, including security groups and network access control lists, to help control access to Amazon EC2 instances in each subnet.
It provides you with even more options, including root access, access to Apache and PHP.ini (modification of PHP variables), and much more. You can also install an SSL certificate, and all software program types. In short, you get more freedom in terms of administering and configuring your server, without the hassle of managing any physical hardware.