VPS Hosting stands for Virtual Private Server Hosting. This is a hosting account that comes somewhere in between the dedicated hosting and shared hosting accounts, but it is probably closer to a dedicated hosting account. Using VPS hosting, a server is split into just a few slices (like 10-20 max) and each of these slices functions as a complete hosting server. To the user, it is almost like having a dedicated server for use, but user should be aware of how VPS hosting works and what they are getting from it.
With VPS hosting, prices are smaller than dedicated hosting, and bigger than virtual hosting. You get a decent amount of bandwidth and disk space. However the biggest constrain is the processor power and RAM consumption, which is divided amongst virtual servers hosted on the same machine. A processor slice of let\'s say 250 Mhz and a RAM slice of 64 up to 256 MB, and 4 GB of disk space could be considered typical for most virtual private server hosting accounts. You may also be getting your own IP address which may be considered very interesting by some users that do not want to share their IP address with others, and in this way they avoid problems that may come from the business practices of other webmasters that may affect other websites hosted on the same IP address.
A number of users may find shared hosting too limited for their needs, but the dedicated hosting accounts may be too expensive for their needs. In such cases, VPS hosting may be the proper solution, as it balances the costs and features provided by the hosting account. The fact that you get a virtual server that acts almost as a full server with full root access is nice to have at such lower costs. The reliability of the main server is ensured by the hosting provider and in this way you end up having a good hosting solution at a lower price. This advantage has increased the popularity of VPS hosting, and therefore more and more hosting providers today have endeavoured into providing virtual private server hosting solutions as a viable alternative to shared and dedicated hosting accounts. The advantage of having the ability to install certain software on the virtual server provides the user with more flexibility and increases the popularity of virtual private server based hosting solutions.
If you find the vps hosting accounts not satisfactory enough, there is always the possibility of jumping upwards into a dedicated hosting account; therefore it would be wiser to choose a provider that offers both types of hosting, should you ever need to upgrade to a dedicated account, as this will make the transition much simpler since you do not have to change the provider.