VPS stands for Virtual Private Server. VPS is a flexible solution and alternative for shared and dedicated hosting in terms of functions as well as price. A website hosted on VPS has its own RAM and disk space. But, it uses the same processing capacity (CPU) similar to shared server.
In Shared hosting, your website is hosted on a machine with couple of other websites. Your website shares everything like RAM, disk space, CPU with others. Its drawback is that usability of above things depends upon its availability. So in case of any vital requirement, you have to depend on its availability. In contrast to this, dedicated server is dedicated towards only one website. In this case, your site is the only one which is hosted on server and all resources are available for you only. Dedicated servers are relatively expensive and best suitable for large websites with big database.
VPS is also known as Virtual Dedicated Server (VDS). Resembling to meaning of virtual, VPS seems to users as a dedicated server, but in reality it is installed on a computer to serve multiple websites. Numerous VPS can be installed on one computer, with its own Operating System (OS). Hosting software is being run for a particular user. Web server program, File Transfer Protocol, mail server program and specialized applications are present in hosting software for each VPS.
VPS is best alternative for small or medium businesses that cannot afford a dedicated server.
Difference between VPS, Shared and Dedicated hosting
Through dedicated server, you get an entire server. This is best for businesses that attract a large traffic and need specific set up for their server. So, if you don’t have a large website, there is no need of dedicated server. While if you are a newbie and has just started your business, you can go for shared server. You can rent a small piece of server and save your money. With VPS server, you can restart services, make modifications to server files and generate other user hosting accounts. You should decide on VPS, if your tasks are not very demanding.