A VPS or Virtual Private Server is called the bridge between
shared hosting and dedicated hosting since in the strictly technical sense, it is both. While in shared hosting the client shares the resources of a server, in
VPS hosting, the client shares the server resources in a different way. They have a certain allocated share of the resources that is dedicated solely for their use. This is the dedicated server aspect. The server is divided virtually to allow each client account to have specific amounts of resources. A physical server is virtually divided into various compartments. Now, software is set up in each of these separately. This allows each portion to function independently, completely aloof of the others on the same server. The individual account will have its own set of resources. The website performance of any website would not affect the others. Also, the client receives the exact amount of resources they would pay for. They would also get complete control of their own server. You can easily customize it according to your needs, just like you would with a
dedicated servers. So, basically VPS hosting gives you the best of both the worlds.