VPS Hosting
A VPS hosting has a single physical server that is bifurcated for creating multiple virtual servers and each of these is capable enough to function independently. In this case, the clients get the root access to the server and can tweak server settings for meeting their business needs.
VPS hosting is free and allows users to install applications and scripts needed to boost their businesses. With a managed VPS hosting, clients enjoy higher scalability and there is zero downtime during upgrades. Clients can go for hardware upgrades such as additional RAM or bandwidth or even disk space.
Dedicated Server Hosting
In dedicated hosting, the entire server and its resources are used by a single server only. When a single user uses these resources, he gets higher flexibility, customizability, better technical support and enhanced security for his clients.
With a managed dedicated server plan, tasks like buying, deploying, maintaining and monitoring the server lie with the hosting provider. They ensure installation of the servers, routined upgrades, installation of software patches, etc.
In a nutshell, dedicated hosting refers to the hosting solution where the entire server is leased by a client and managed by the hosting provider. In dedicated hosting, the number of resources offered by the server is limited for the client. Dedicated hosting is mostly meant for e-commerce websites.
I hope you understood the basic underlined difference between VPS Hosting
and
Dedicated Server Hosting.