There are quite a few options available in the market when it comes to hosting. Shared servers, VPS, dedicated servers and managed hosting, all have their USPs. Hence a customer is spoilt for choices while choosing the best fitment for their business, mainly perplexed with the blurry line between two general types i.e. Dedicated and VPS Hosting. That said, in my opinion VPS is quite a smart choice for the majority of businesses. It offers copious power as compared to shared hosting at a much lesser price. Although VPS is a little confusing concept to imbibe than dedicated servers --because it is simple to identify with the dedicated servers - it is a perfect mix of reliable services and affordable price range.
Instead of running one account on a single computer, VPS shares a single server. This might again put you in a spot of bother wondering about the difference between a shared server and VPS.
Shared hosting promises unlimited bandwidth coupled with unlimited storage however there is no surety in regards to the memory available, CPU power in most cases. Also there are restrictions on installing/running CPU and memory intensive software or module.
VPS solutions, on the contrary offer a minimum allocation of resources which are guaranteed 24 X 7. Service providers often burst resources that come into picture in case of heavy load on the server. Each website gets a unique IP address although residing on a common server.
The other luring feature VPS solutions provide is high control to the customers in terms of application installation, software installation, scalability of resources, etc. You can just flip the digital "on and off" switch from the control panel whenever the server needs to be rebooted.
As it is said, gaining something by investing nothing is not feasible. So customers need to be wary of the unscrupulous touts offered in the market by many service providers. Going for an established and well-known market player is a safe and wise choice.