VPS or virtual private server is a method of splitting a server into parts in order to give users a virtual dedicated environment. It bridges the gap between a shared web hosting and dedicated hosting servers. This gives users independence from other users and can run their own operating system at a cost much lesser than that of operating a physical dedicated server.Since operating a VPS is charge on a fixed bit rate the user cannot exceed his monthly budget.VPS is for those who cannot afford dedicated server but need most of the features of a dedicated web server like installing custom software. Its for clients who are not ready to share the same system with other websites and who need more resources in terms of CPU and RAM. Using a VPS also give the users administrative powers. Like in a dedicated server in VPS also is free from the problem of slow loading of websites.Unlike a dedicated hosting server VPS is a virtual server partitioned by a software. Even though it acts as a standalone server in reality its still a shared sever. It’s the software that isolates different partitions. VPS servers can offer as smaller resources depending on the requirement.Hosting a website will require only a shared server or a VPS. Dedicated hosting servers are required only in case of immensely popular sites where volume of network traffic is very high. In case of a new website it can be hosted initially on a VPS and then when it becomes very popular it can be shifted to a dedicated server if need arises.