In answering this question, maybe it’s better to examine how VPS hosting fits in to the overall offerings of most hosting companies. Shared hosting is just that – your site is hosted on a machine with a bunch of other sites, and each of you share the same resources, including RAM, disk space, and CPU.  Your site uses what it needs if it’s available, and if it’s not – well, that’s the limitation of shared hosting. Likewise, a dedicated server is also self-explanatory –  your site is the only one hosted on server, and you have all the aforementioned resources available at your beck and call. Dedicated hosting is therefore  for those large sites with big databases and lots of traffic, whereas the limitations of shared hosting’s usually prevent it from housing that kind of site. Dedicated servers are also relatively expensive, while one can get a shared hosting plan for under $10 per month.
The more content you add to your website over time, the slower it will run. There are often a few causes for this common problem, but there’s a good chance that your site is slow because you’ve finally hit your shared hosting limits. In order to boost your site’s speed, it’s a good idea to upgrade from shared hosting to VPS hosting to decrease page loading times.


Similarly, in the case of VPS, there are several users that are using the same server but they are isolated from each other. It means that no one will be affected by how much resources another is using. You will get the speed and security that you need without compromise. It is almost a perfect scenario because you will get the benefits of a private server with shared cost of services.
Cloud VPS is a type of hosting where multiple companies use isolated instances on the same host or parent server. This is perhaps the most common type of VPS hosting — when you hear someone talk about VPS, it’s most likely Cloud VPS. As you probably guessed based on the word “cloud,” another benefit is that you can access your Cloud VPS environments from anywhere.

With Cloud VPS, if a parent server has 64 processing cores, it can host up to 64 instances. Each instance is allocated its own bandwidth and storage, so your performance won’t be affected by other companies on the server in the way it might with shared hosting. You also get more bandwidth and storage since the hosting company is limited on the number of instances they can create on each parent server.
This means just a few domains could pull an entire reseller website offline if transfer limits are not closely monitored on a regular basis. Many Cloud VPS plans offer a "pay as you go" approach to billing where only the actual amount of CPU resources, storage, and I/O processes are billed. Systems administrators and website publishers need to calculate expected monthly traffic rates when estimating how many system resources are required to support a website in production. "Pay as you go" approaches can be more costly than fixed ratio accounts, where the trade-off is typically a more advanced VPS platform and toolset.
You’ll also Benefit from the Following Features:

Think of a shared server as a large apartment complex, and all of the individual apartments are rented by other website owners. All of you need a place to live — just like your website’s files — but going out to buy a huge family home would be too expensive for your needs. Sharing common areas and utilities in an apartment block helps keep costs down. And the same is true for shared hosting.
In answering this question, maybe it’s better to examine how VPS hosting fits in to the overall offerings of most hosting companies. Shared hosting is just that – your site is hosted on a machine with a bunch of other sites, and each of you share the same resources, including RAM, disk space, and CPU.  Your site uses what it needs if it’s available, and if it’s not – well, that’s the limitation of shared hosting. Likewise, a dedicated server is also self-explanatory –  your site is the only one hosted on server, and you have all the aforementioned resources available at your beck and call. Dedicated hosting is therefore  for those large sites with big databases and lots of traffic, whereas the limitations of shared hosting’s usually prevent it from housing that kind of site. Dedicated servers are also relatively expensive, while one can get a shared hosting plan for under $10 per month.

And if your “neighbor” on the server is hacked, there’s little chance the infection will spread to your VPS because the hypervisors that are used to create separate VPS environments deliver multi-layered network security and keep tight controls on what enters and leaves. Your root access also means you can add or customize your VPS security software as you please.
So that’s it, then – a VPS is for everything in between, right? Well, yes…and no. A VPS (Virtual Private Server) is a flexible solution that falls in between shared and dedicated hosting, not only in price but also in the way it functions. Like a dedicated server, a site hosted on a VPS gets its own RAM and disk space; however, like a shared server, it uses the same processing capacity (CPU) as a certain number of other sites. So, while your site’s performance isn’t reliant on shared RAM and disk space, it is dependent on a shared processor. Moreover, the distribution of processor share varies from provider to provider.  The table below shows how most hosting companies break down the differences between shared, VPS, and dedicated hosting plans:
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