Think of this as an apartment complex. It’s one big building (a server) where hundreds of residents (websites) live. You have all the resources you need, but you pay less since you’re sharing them with multiple residents.
If shared web hosting is like an apartment complex, VPS is more like a townhome. You’ll enjoy upgraded resources AND you’ll be sharing them with much fewer people. This gives you more power, flexibility and control, but it also costs a little more.
This is exactly what it sounds like – a single-tenant virtual machine that’s dedicated to you and you alone – which makes it the ultra-modern single family home in our analogy. It’s the most costly option, but only high-traffic, resource-intensive websites really need it.