Hosting can be classified into four categories: shared hosting, managed hosting, dedicated servers, and VPS (virtual private servers). Shared hosting is the lowest form of web hosting with regards to performance, customizability, and price. This leaves clients with serious needs of hosting to pick from VPS dedicated servers or managed hosting options.
Many different options are available for customers seeking VPS or dedicated servers creating a somewhat unclear line between the two hosting solution types.
With VPS, the server resources are split between different hosting accounts or websites. Their functions are similar to the way home computers have several different users who all use the device differently.
VPS servers have both expensive and cheap options to choose from. However, the cost ranges from $20 to $100 a month. They have one to two hosting environments to pick from; therefore, they lack the customization qualities of dedicated hosts. However, it does not mean those using basic websites have an easy setup.
This hosting form is enough for much simpler sites that do not receive massive traffic. All in all, if you need root access to a server without considering the expense of a fully dedicated server, then VPS is your perfect solution.
Also, if you are not into shared hosting and require more control over the host, then VPS is the right fit. But if your needs fall in the lines of more advanced hosting with superior customization options, dedicated hosting is your answer.
As the name suggests, this server is literally dedicated to your personal use. You will have rights to all machine resources and will be able to perform hosting configuration as you desire.
This form of hosting is usually worthwhile only if you are getting more than 500,000 website visitors per month and have the technical staff necessary for maintaining and optimizing your server.
Since right or wrong in hosting does not exist, it all depends on what you think your website needs. Therefore, make sure that you know the different hosting firms before choosing your hosting provider.
Although dedicated servers are usually expensive, it would be best to start off with a VPS until you generate enough income to support dedicated server costs.
If you are a startup, it is advisable to go for VPS and manage everything without having to pay for dedicated server expenses. But given your company grows, or you have enough capital dedicated hosting would be the way to go.