Virtual private server (VPS) hosting is a method in which a physical server is shared across multiple servers so that each one has the look and feel of a privately owned server. It may sound like Shared Hosting but it’s not like that at all.
VPS guarantees a minimum resource allocation to your account, something that is not possible with Shared Hosting. Even with the best Shared Hosting plan this is not feasible. With VPS you ensure minimum RAM, storage capacity and CPU power. VPS is ideal if you want the whole condo to yourself. One step ahead of Shared Hosting and one step before Dedicated Server.