A virtual private server (VPS) is a cross between a dedicated and a shared server. It’s not quite the best of both worlds, but it is a good compromise, especially if you want to keep your website hosting costs down while having a bit more power.
Using shared plans, you share a server and its resources with other websites. With a VPS, you still share some resources, but it provides a virtual partition for each user, acting like multiple dedicated servers.
For web admins, using a VPS means that they get the administrative power of a dedicated hosting setup, including the ability to customize the server to suit their needs.