When shopping for a hosted server solution it is worth understanding all the terminology and terms used in hosting to help you make the best decision for your business use case. What is the difference between a VPS (Virtual Private Server) and a Dedicated Server?
VPS server is a logical or software based server that runs on a physical server while a dedicated server is a tangible physical server with CPU, RAM and Hard drives.
Let dive into the details though and let's start with the easier one Dedicated Server.
A dedicated server is a real physical hardware server. Much a like a desktop computer except with more powerful specs such as CPU RAM and disk space. When a hosting company advertises a dedicated server most of the time they are saying that they will provide you with a real server at the datacenter. If you ask them to add RAM then they have to literally open your box and add RAM for instance.
A virtual private server is a server that does exactly what a physical dedicated server does except its software based. VPSes rely on a physical server to run. It is possibel to run many VPS servers on one physical server. This is the real beautiy of VPS. You can put multiple on physical server and therefore save hardware cost, data center space and manage all the VPS servers easier.
Here's a diagram that shows the multiple VPS servers living inside one physical server.
Note that it is possible to get a very well performing VPS server even though the general understanding is that they are weaker servers. For example you can have a VPS with 64 GB of RAM and 12 Core CPU.
Unless you have a need for physical server, VPS is the way to go. Of course consult with your hosting provider to determine the best option for you application.