The VPS hosting is a very simple concept to understand, it is essentially a small server shared by a larger server. Thanks to virtualization technology, a server is divided into several small servers called virtual private servers. A VPS hosting server is physically the same as a dedicated server, but the hardware is shared with other tenants.
Why is it better than a dedicated server?
Private virtual servers have a unique advantage on dedicated servers, it is less expensive. A VPS would cost a fraction of the price of a dedicated server. You can save up to 30-40% of the purchase of a VPS instead, but it would not offer you as much functionality as a dedicated server would.
Why is it better than a shared server?
Equal to shared servers, private virtual servers are isolated from other servers hosted on the same machine. Things such as disk space, operating system, and RAM are not shared among multiple users. The environment of hosting a VPS is a bit like a dedicated server.
Conclusions and Decisions:
If you run a small business and are looking to save money, then a virtual private server might be your optimal solution. Anyway, you would still need technical knowledge to properly monitor and maintain a server. So, if you do not have a technical profile, it is better to have your host manage the server for you by purchasing a managed server plan.