VPS hosting serves as a middle ground between shared hosting and dedicated hosting. Each VPS server is separated into distinct repartitions, meaning each client has the equivalent of their own server. This gives them far more power, control, and customization than they would with shared hosting, though not quite as much as they'd have with a dedicated hosting plan.
VPS hosting also offers several other distinct advantages over shared hosting, including control over server reboots, software configuration, and more.