VPS is both dedicated hosting's and shared hosting and comes in between them. In VPS hosting, multiple sites share the same server, but all the sites have their resources dedicated to them. In virtual private server hosting, a fixed amount of resources is given to a particular site with the help of hypervisor.
The hypervisor is a hardware, software or firmware that can create and run virtual machines. It divides the resources of one machine to several virtual machines, and fix the quantity of resources that anyone VM can absorb.
It does the same with VPS. From one big server, it distributes the server to several virtual servers.
VPS server has better uptime than the shared hosting and cost less expensive than dedicated hosting. It is an efficient hosting plan and works great for small business and blogs with low traffic.
Dedicated hosting means owning the entire server without sharing it with anyone. This is a type of Internet hosting where the owner has complete control and access over the server. All of the resources of dedicated hosting is only for one client. The client can configure or customize the server as he like.
It is similar to buying a complete land and then using it however you like with no interruptions from anyone.
Dedicated hosting has the highest uptime, and is the most expensive. Large organizations with massive traffic choose dedicated hosting.
Performance-wise, Dedicated hosting is much ahead of any other type of hosting.
When we talk about performance, we mean how fast the website could load and how much concurrent traffic it can handle.
VPS hosting use hypervisor that borrows the resources from the neighborhood sites if the traffic surges. It means that it also borrows the resources from your website if the traffic of the next site takes a hike.
If multiple sites get traffic hike, they will borrow the resources from your site, and slow down your site.
On the other hand, the dedicated server has all the bandwidth focus on one account. It provides the optimum speed and can manage large traffic without crashing.