A VPS essentially sits between a dedicated hosting service and a shared hosting service as the sort of half marker. It costs less than a dedicated physical server, hence the "virtual" bit, and it grants customers considerable independence because it runs a copy of its operating system. Customers have access to the operating system and can install any software that will run in a virtual environment.
A VSP is created by virtualization software that partitions a physical server to divide it into multiple servers. Each of the individual "virtual" servers function just the same as a networked server, of course, but they're still "sharing" physical space. This is what keeps the costs in the neighborhood of shared hosting.
The function, however, is similar to that of dedicated hosting. VPS offers stability benefits in that it doesn't get impacted by the actions of other customers on the server. While shared hosting includes some unwanted situations through the traffic of other users on the network, VPS skips the possibility because each user is granted their own resources. Because of this, your visitors enjoy faster load times.
Dedicated resources means that your operation also gets more disk space, RAM and CPU. This is one of the most attractive reasons to side with a VPS, as it delivers maximum flexibility for a very reasonable price.
The security factor is also worth taking a look at. VPS offers premium security along the same lines as dedicated servers, but shared hosting doesn't include the same coverage by nature of the beast. When you're sharing a server, you have to have a degree of openness to ensure that other customers can get their money's worth. In a VPS set-up, your security is assured and your privacy is considered vital.
Because VPS accounts are isolated from one another, if something happens to one account in the physical server the others are still held secure.
Performance is impacted by the set-up of the VPS as well. In a shared system, the performance depends on the performance of other accounts. Suppose a customer is using his or her system to drain resources by downloading a lot of items or sending out multiple emails. His or her performance directly impacts your ability to perform, which can put you in a difficult position. A VPS ensures that your resources are your own, protecting performance and ensuring that "bad neighbors" affect their own accounts.
As you may be guessing, there are many benefits to VPS. Small and medium-sized businesses are quickly discovering these benefits and are flocking to virtual private servers for their corporate needs. For cost, performance and security advantages, it's hard to imagine a better scenario than today's VPS to help give your business operations that extra boost.