Virtual Private Servers (VPS)
A Virtual Private Server setup means that you will share a server with other websites. The difference between VPS and shared hosting is that with VPS, your site has its own section of a server. This means that you will get more privacy and security from a VPS option than you would with a shared hosting option. But, make no mistake, a virtual private server is not the same as a dedicated server, and you will face various restrictions with a VPS setup. You can, however, still use most software programs (though RAM restrictions are common).
A truly dedicated server is yours and yours alone. This setup means that your site is the only site running on a particular server so you won't have to share that server with any other site. This is the best way to ensure the fastest site speeds, set up the best advertising options, and make sure that your site is never bogged down by other sites that get a lot of spam or are sending out a lot of spam. More often than not, dedicated server options are not fully managed, and this means that you will be responsible for handling all updates and other important details. It is possible, in most cases, to opt for a managed dedicated hosting plan, though.
If you don't have any server management experience (or a tech team), choose a managed plan to save yourself some stress! Got an IT team on hand? Store your server at your place of business to save on management and other costs. If you do go the managed route, though, note that it will cost you more to have a dedicated and managed server option. But, you will also save when it comes to not losing business on account of a very slow site.
Which One to Choose
The best way to select a server type is to write down what you want to get from a hosting company. In most cases, small businesses will benefit from VPS options, while larger businesses can't really afford not to get a dedicated server option. But, it depends on your budget and which server setup will work for you. Weigh the pros and cons, shop around, and make sure to read the various reviews of both types of servers on this site - we've set it all up to make your life a lot easier!