One of the most important factors that you need to keep in mind is the operating system of your server. Currently, Linux and Windows are the two most popular operating systems being offered by providers. Since Linux is an open source software, it costs less than Windows. In addition, it is also considered to be more user friendly while supporting a far greater range of applications as well.
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With VPS, you pay for what you use in the sense that you select a certain amount of bandwidth and storage to be allocated in advance. Scaling involves resizing your resources. But with cloud hosting, you pay for what you use in that your resource levels are not pre-determined, which means unpredictable pricing that tends to be more costly than VPS due to the overhead and complexity involved.
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: