A VPS (Virtual Private Server) hosting is a server with its own operating system, own allocated resources within a bigger server.
You can imagine it as Shared Hosting with Server Root Access, Dedicated Resources and Isolated Environment.
How VPS works?
A big and powerful physical server is divided into several virtual servers. These individual virtual servers got their software set up separately, therefore each unit can function independently.
Other servers will be located on the same hardware, but only you will able to access your server resources (CPU, RAM, disk space, etc). This means that other websites running on the same machine won’t affect the performance of your server.
You can imagine this like having your own apartment in a building.
How is VPS different than Shared Hosting?
You get higher performance for a bit higher price, but still much cheaper than having your own Dedicated Server. You have complete root access for your server as it was your own dedicated server, but you share a server with others.
The server resources are completely separated (CPU, RAM, disk space, bandwidth) and only you can access what you are paying for. So VPS hosting gives you complete control over your server as it was your own Dedicated Server, but limited performance. Upgrading is really easy, if you want more RAM or CPU cores you don’t need to buy more hardware, it’s accessible with a few pushes of buttons.