VPS is relatively a new hosting technology that has managed to gain a lot of popularity in a short amount of time. Over the years the only two options that users had were dedicated and shared servers. However, today you would be able to have a third option in the form of virtual private servers. Dedicated servers are quite popular with users because they offer a lot of flexibility and plenty of great features.
However, it is not a suitable option for several users because the hosting service requires a very high investment and maintenance cost. Since you will have all resources allocated only to you, you would not be expected to share it with anyone else. With virtual private servers, there would be one server out of which you will get a virtual slice. However, it is quite different from shared hosting because you will get a lot of flexibility, freedom and dedicated resources for use.
Web Hosting Control
When compared to shared hosting plans, VPS and dedicated servers offer complete control of the account. You will be able to enjoy flexibility and freedom to manage resources the way you want.
Hardware
With dedicated server, there would be a huge initial investment since the hardware required and the infrastructure would be quite a lot. If you want to cut down your expenses and do not want the responsibility of handling a lot of hardware then using virtual private server would be a great choice for you.
Cost
With dedicated hosting, the main drawback is that the cost involved is quite high because of the infrastructure, equipment and maintenance that is required. If cost effectiveness is an important factor for you then VPS would be the better choice since you would be able to enjoy great features without too much of investment.
Security and Performance
When compared to dedicated servers, it is a little complex to understand virtual private servers. You would need some amount of knowledge when you work with this type of server. However, as far as security and performance are concerned, virtual private servers do offer comparable results to dedicated servers. You will not have to worry about down time or slow servers. You would have total isolation and so the level of security offered is quite impressive.
Considering the points above, it can be said that both these hosting servers offer similar features and benefits. However, VPS is the best solution for businesses that want cost effectiveness.