VPS (virtual private server) hosting is part shared hosting and part dedicated hosting. With VPS hosting, multiple websites are hosted on the same physical server, but each website operates independently as if it were on its own separate server. VPS hosting solves the problem of resource sharing that comes with shared hosting where one website could use all of the resources causing other sites on the server to perform poorly. Users can customize their `container` on the VPS without affecting other sites on the server. This virtualization brings the cost of VPS hosting down, so it?s not as expensive as dedicated hosting but solves some of the problems of shared hosting. VPS hosting is a good option for sites that have outgrown shared hosting but aren?t quite ready for dedicated hosting yet.