A Virtual Server (VPS) has the lowest cost and is the only option with no contract term. They offer fewer resources, some of which are shared between multiple VPSs. A Virtual Dedicated Server (VDS) costs more, because you get more. It has dedicated resources and hardware (like drives) while still being virtualised. This means you get a huge amount of resources without having to pay for all the hardware and associated costs yourself. Finally there are Dedicated Servers which are entire machines for your exclusive use. These offer the most power and are the only option that gives you a whole physical server to yourself. This can make them more expensive and less fault tolerant than virtual offerings.