In the olden days, shared hosting is perfect suitable for most of the people. But when you start to making money with your websites and start getting a decent amount of traffic it might be a time to switch over to Virtual Private Server (VPS) hosting. With a vps hosting, a single web server is partitioned by virtualization software to make it appear as a multiple virtual servers. The vps hosting is basically where the hosting provider will create a multiple virtual servers from a single physical server so as to host as many different entities of customers. In this type of web hosting a single web server is partitioned by virtualization software to make it appear as a multiple virtual servers.
As in shared hosting, other virtual private servers running on same machine and hardware will not get affected by CPU load and huge traffic. Your VPS doesn’t have to share services or the applications with its neighboring servers. As each of the servers is independent and they are completely invisible to the neighbor, they too are not required to share processor or file system. In VPS, each or your private server will get a unique IP address so that it won’t affect the websites which are hosted on the other servers. Also with the root access, you will be allowed to install and manage many of the software applications on VPS hosting account as same as you would on dedicated server.