Virtual Private Server (VPS) Hosting provides most of the advantages of dedicated website hosting at a significantly lower cost. As a result it is a good option for anyone (especially businesses) who needs greater flexibility, authority and security than shared hosting can provide but cannot justify the cost of dedicated server hosting.

Modern virtualization software makes it possible to make a single physical server behave like multiple servers, which appear to a user to be physical servers. When you sign-up for VPS Hosting you can specify the system resources you require (and the cost varies accordingly) but subsequent upgrades are quick and easy.  Some hosts allow the guaranteed resources to be exceeded in short term “bursts”.

The features of a VPS hosting package vary by supplier but in general the benefits of VPS hosting include:

Similar service to dedicated website hosting but at a significantly reduced price.
Ability to start small but scale up quickly and easily.
Security is much better than with shared hosting. The virtual server runs in its own isolated environment shielded from any actions of other users.
Linux users get root access to the virtual server which means that any software required can be installed and the server configured as required. (Windows hosting customers will get full administrative access).
Better website performance as loading times should be faster and consistent, due to having guaranteed system resources (no competition for resources as with shared hosting).
Choice of control panels may be offered by a supplier enabling you to match your requirements and technical knowledge.

Compared to shared hosting a user of VPS hosting will typically have greater technical expertise.  Shared hosting is made as easy as possible and users are given limited access to the server and the hosting company manages it (applies updates, patches etc.). With VPS hosting you usually have root access to the virtual server and can load the software you require. This means that you will be responsible for managing it and if problems arise on your virtual server you will have to resolve them. If this might be a problem it may be that you can trade some of your control for greater support from the hosting company.  

Compared to dedicated server hosting, VPS hosting offers much the same benefits but is still slightly inferior in terms of performance. With VPS hosting you cannot totally avoid the fact that you are still sharing physical hardware even though you have guaranteed resources (CPU, RAM, disk space).  This means that dedicated server hosting is still the way to deliver optimal performance of your website.