Shared hosting, also sometimes referred to as virtual hosting, is a web hosting environment where each individual hosting account is stored on a single web server. Think of a web server as a very powerful computer loaded with resources. Each of the accounts on the server shares the server's system resources. These resources include disk space, data transfer and server processing power.
VPS is an abbreviation for "virtual private server. A VPS works by dividing a physical server into separate virtual machines. Each of these virtual machines, or virtual private servers, operate completely independently from one another. In other words, each VPS has its own operating system as well as allocation of resources like RAM, CPU and disk space. This provides you with an environment that closely mimics that of a Dedicated Server, without the costs associated with it.
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