There are several similarities as well as differences between a dedicated server and a VPS server. To say which is better will depend on the individual needs of the consumer. VPS is nothing but a split version of the dedicated server and operates in a similar manner.
Small and medium businesses could consider the
VPS hosting because of its lower price. You have control over your space and similar features like in a dedicated server. However, in VPS you share the server with other businesses which means you are not getting the complete resources for your websites. If your business deals with mission-critical applications and is not concerned much with the other resources, you can host your business on a VPS server.
In
dedicated server, you are alone and have all the resources only for your business. It is an ideal hosting solution for businesses that have a large of visitors from across the globe and you need maximum space and resources to manage the traffic.
VPS allows you to scale your resources to meet peak traffic demands but again your host may ask you to upgrade to a higher plan or move to the dedicated server with increasing traffic. Every business after a certain stage must move to the dedicated server for better reliability and performance.