VPS hosting is a Virtual Private Server that is a virtualized server. A VPS hosting environment provides a dedicated server within a shared hosting environment. It is technically both shared hosting and dedicated hosting.

VPS Hosting is one of several types of web hosting accounts one can choose to host their website online. To have a website on the internet, they need to have their website files on a web server. Setting up and managing a server can not only be expensive but difficult too. Purchasing web hosting allows someone to rent space on a web server, making it easier for an average person to have hosted a website online because all they need to do is upload their site files (no server setup is needed on their part).

All three of these hosting account types are similar in the fact that they all give us a web server to run our website on. They vary in how they are setup, the features they offer, and the level of customization we can have with each one.

Uniqueness
With dedicated servers, one can rent an entire server. This is optimal for people that have very high traffic to their websites or need to set up 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. If you are considering a dedicated server and are unsure if it is right for you, perhaps you will need to get VPS hosting.
Benefits
VPS hosting gives you the affordability of shared hosting while at the same time giving you more power and control like a dedicated server.

Privacy – As you don’t share your OS with anyone else, there are no other websites on your server that potentially has access to your files.
Customization – With a VPS Server, you have your own Operating System. This also means that you have your own instances of all server applications such as Apache, PHP, and MySQL. If you need to have any of these services customized, you can make changes to suit the server to your needs.
Control – If you’re installing server applications that require a system restart, you can do so at any time. Even though technically you share a server with other VPS servers, your VPS server can be restarted without affecting anyone else.
Dedicated Resources – On a VPS Server, you have dedicated amounts of RAM available to you at any time.

Unlike shared hosting, there is no one else on your server that can use utilize the entire RAM when you need it most!