VPS is something of a halfway house between shared and dedicated hosting. On the one hand, it offers the flexibility of shared hosting, as a single server can host multiple VPS. This can lead to lower hosting costs and ease of scaling. On the other hand, a VPS has ringfenced resources, much like a dedicated server. Businesses can rely on a VPS, safe in the knowledge that they will always have a consistent level of memory and processing power.
Often, the decision between these options comes down to the size of the company. Shared hosting is ideal for small businesses that want to keep costs down. Dedicated hosting is perfect for large enterprises looking to augment their existing digital infrastructure.
VPS is attractive to mid-size companies, or businesses that may need to scale up quickly in the near future. There is the option to increase the capacity of the virtual server as demand increases, and eventually migrate to dedicated hosting.