VPS hosting provides a balance between shared hosting and dedicated server hosting. Unlike shared hosting, you have greater control over your virtual space in a VPS, yet you still share resources with other users. This makes VPS hosting more powerful than shared hosting but less expensive than a dedicated server. VPS is ideal for moderately-sized web projects, with the added advantage of not having to worry about hardware management.
On the other hand, a dedicated server gives you exclusive access to all the resources, making it the most powerful and flexible option, though at a higher cost. If you want to manage the hardware yourself, build complex architectures, create a private network, or deploy complex non-web solutions, a dedicated server is recommended. Generally, users with a growing volume of web activity upgrade to dedicated servers or Public Cloud solutions for more elaborate, adaptable infrastructures that can accommodate high growth levels.