Web hosting comes in different packages. VPS (Virtual Private Server) and Dedicated Server Hosting make for the two major classifications. While VPS comprises of multiple virtual servers within a single server, where each virtual server can run its own full-fledged operating system, and can even be independently rebooted; dedicated servers offer a totally different experience, and hence is more suited to mid or large sized business entities, considering the amount of data that is handled.
A Virtual private server (VPS) is organized through software to have numerous virtual machines running on a single system. It deals much greater control over the hosted platform and permitting the user to run their own scripts and software, and also provides more resources and processing power. As compared to VPS, a dedicated server has some different concept of hosting in which a user is assigned a separate server with its own hardware and resources totally in his control and under his administration. It provides you with unlimited bandwidth and storage space, which assure maximum website uptime, quick response time and much controlled environment.
With VPS, web hosting becomes more affordable as compared to dedicated type. Apart from this your data is equally safe and secure and your resources such as your disk space ram and CPU is not subjected to sharing. However you might be required to share your server with other users. As far as dedicated servers are concerned, a user of such a server has a ROOT/ADMINISTRATOR ACCESS and can even sell or share his resources to someone else, as per his discretion.
Due to the virtual location of the server, the price of a VPS hosting is much a smaller amount than that of a dedicated server hosting. Though, if you are looking for cost effective server, then you might consider VPS hosting. But if you want to identify your own server then you need to deliberate a dedicated server and look ahead for dedicated hosting plans.
Both of VPS and Dedicated servers also offer the best level of security for the websites but as compared to VPS, dedicated server's performance is excellent, in terms of security, firewalls and technical support management.