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.
A VPS runs its own copy of an operating system (OS), and customers may have superuser-level access to that operating system instance, so they can install almost any software that runs on that OS. For many purposes they are functionally equivalent to a dedicated physical server, and being software-defined, are able to be much more easily created and configured. They are priced much lower than an equivalent physical server. However, as they share the underlying physical hardware with other VPSes, performance may be lower, depending on the workload of any other executing virtual machines.