What is VPS?
All of the hosting packages out there can be divided into the 3 big baskets: shared, VPS and VDS. With the shared option, you share the server on which you host with other sites. In VPS (virtual private server), you create your own virtual operating system on top of the physical server and thus you don’t share resources with other customers. In a VDS, you use the whole physical server for yourself.
Who’s it for?
VPS is seen as the second stage in the three-level upgrade scenario (shared, VPS and VDS). So, if you are starting up your online voyage, use the shared hosting to save up that cash. But, at the same time, the difference between the two options isn’t that big, so you can get loose and buy that VPS from the very start.
For businesses like ecommerce where you’re going to deal with personal information people send your way, VPS is a must-have. In addition, VPS offers a lot of leeway for you to start learning about the technical side of the business, so getting your groove on with it will be extremely beneficial.
And VDS is really for big sites with lots of traffic. Don’t make yourself migrate there prematurely.