With a VPS the resources of the server will be split between different websites or hosting accounts. Think of it as a home computer that has many different users, all of who use the machine in different ways.
Virtual Private Servers have both high end and low end options available. However, the cost usually ranges from $20/month all the way up to $100+/month. VPS servers usually have one or two hosting environments you can choose from, so they lack the absolute customization of dedicated hosts. But, this does mean easier setup for those who have more basic websites.
This style of hosting will be enough for sites that are simpler and don’t receive massive amounts of traffic. Overall, you can think of VPS hosting as a perfect solution for those who require root access on a server, but don’t want the expense of a full dedicated server.
A dedicated server is a server that’s literally dedicated to your own personal use. You’ll have rights to all of the resources of the machine, and you’ll be able to configure the hosting environment however you wish.
Dedicated hosts are usually only worthwhile if you’re receiving over 500,000 visitors per month and have the necessary technical staff to maintain and optimize your server.
There is no right and wrong when it comes to hosting. Instead, it simply depends upon what’s the best choice for your website. We all have different needs. So make sure you take stock of what kind of hosting support you’ll need before you choose a web host.
However, since dedicated servers are almost always more expensive it’s generally a good idea to start with a VPS until your company is generating enough revenue to support the cost of a dedicated server.