VPS Hosting vs. Dedicated Servers
VPS Hosting (virtual private server hosting) is hosting on a large machine that is shared by many users. Even though each user has his or her own partition and operating system on the server, it is still shared by more than one person. This differs from dedicated servers.
A dedicated server is one machine, either owned by the company or by the individual that is for use only by that customer. This gives a greater range of freedom as to what operating system you want to use and what programs you want to install on your machine.
Generally speaking, dedicated servers are more expensive than virtual private servers. Often you are leasing a machine from the service provider. You may also be required to pay for any upgrades to memory or hardware changes. In virtual private server hosting, there is usually one set rate per month with no surprise or hidden fees. Be sure to carefully read your service agreement to know exactly what is included in your package, such as what installations are or are not allowed on your machine.