VPS stands for Virtual Private Server, is a virtual machine sold as a service by an Internet hosting service. It runs its own copy of an operating system, and customers may have superuser-level access to that operating system instance, so they can install almost any software that runs on that OS.
Imagine one pie with several slices, one slice is a VPS, and the whole pie is a dedicated server. Dedicates servers can cost a lot. Is this really needed for you? A VPS will only cost a part of the entire server.
VPS offers you full control including root access on the server. When you have a virtual private server other users activities can not slow your website, no matter what they are doing on theirs. virtual private servers are easy to upgrade, you can smoothly add resources to your caps like disk space or bandwidth.
Since dedicated servers are almost always more expensive, it’s a good idea to start with a virtual private server until your company is generating enough income to support the cost of a dedicated server.