VPS servers are created by splitting a powerful dedicated server. Each of the split portions works as an individual server and have its own operating system. Your website will be hosted in one of the smaller created
virtual private servers (VPS) and be allocated dedicated resources.
It means your business will be sharing the server with other businesses as seen in shared hosting but each of you will have independent and dedicated resources with complete control and liberty to install your own software as in a
dedicated server. It means you have root access to your server and can configure it in any form to suit your business. Since you share the server with others, the expenses are distributed among all of you making VPS more affordable than the shared hosting.
VPS removes the limitations that a business finds with
shared hosting such as limited resources, server crashing due to heavy traffic etc. IN VPS, your business is independent and not affected even if a neighbor website overdraws resources. You have more privacy and security as you are hosted in individual containers. VPS works as an ideal alternative to the small and medium businesses who are not yet prepared for the dedicated server.