VPS hosting is technically a combination between both shared hosting and dedicated hosting.
With dedicated servers, you rent out an entire server, which can get pretty expensive fast. With shared hosting, you end up renting a portion of a server that’s shared with other users. Shared hosting is a solid option for beginners, as it’s generally much cheaper and provides you with the necessary resources to get your site started.
VPS uses a single server and that server is partitioned out into different virtualized server environments. This differs from shared hosting because with shared hosting you have limits on the amount of CPU and memory available, as well as other software restrictions. VPS usually offer baseline resources that you’re guaranteed, plus additional resources available at a moments notice should your site experience a traffic spike.