VPS or Virtual Private Server hosting is often known as training wheels for dedicated hosting and a dedicated server setup.
A VPS hosting plan is like a mixture of the shared resources of a shared hosting plan and a little more of the freedom of a dedicated hosting plan due to the fact that you are put on a server with a less amount of people on it.
Many will often use a VPS plan as a testing ground to see if it is enough for them to keep their site stable (after moving up from shared hosting) and later on find it much easier to move into the dedicated hosting environment.
If you need more server resources, but you want to learn more about managing a dedicated server before jumping in with both feet a VPS hosting setup might be right for you.
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