In terms of performance, features and resources, dedicated server is the best option. If your requirements for resources are not that much then definitely VPS web hosting is a good choice. Mostly people opt VPS hosting due to two main reason, cost effectiveness and similar environment like dedicated server hosting. So choosing VPS or Dedicated server is totally depends on your website requirements and as usual on your budget
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A Dedicated Server is fully dedicated for user. User don't share it with another websites. You have the full hard drive, full use of RAM, full use of the processor. The whole gambit. If you could walk in to the data center where your account is, and look at the actual server, it would be your account only on that server. You have root access.
VPS is known as Virtual Private Server. A VPS is better when you want to develop an total level approach to operating your own site and when shared hosting resources are no longer enough.
VPS is generally noneffective than a Dedicated server which is why they are quite popular with those that require that flexibility a dedicated server offers, but cannot afford the costs that are associated with it.
I would suggest you vps hosting because vps hosting has a lot of advantages such as
1> Security : VPS accounts are insulated from each other, minimizing the risk of unauthorized access from hackers as well as other customers. The isolation of your account also minimizes the risk of being impacted by a DoS attack that was intended for someone else.
2> Performance : All resources can be regulated in the VPS environment. One customer can not run away with a large share of the resources. You service will run reliably and predictably.
3> Protected Mail Service : Each VPS account has its own private mail server, filtered by Postini. This eliminates the risk that your mail service will be blacklisted due to abuses of others sharing the same mail service. It also allows you to take your inbox back from the SPAMMERS.
4> Customer Installed Applications : With VPS you have your own partition and root access. You have the ability to install applications that you want. Please note that hosting company provide support for customer installed applications. You also must assume the responsibility to update any applications that you install in the event that a security vulnerability is discovered in the version you install.
5> Growth Path : VPS system allows us to manage your VPS as an image. This means that your entire environment can be restored from backup to any physical server with no changes to your configuration. You can also easily downgrade or upgrade your service with no downtime!
IMO, dedicated servers are much better and perform better than VPS. On the other hand VPS are cheap, fast, easy to set up, but dedicated server means all the resources are yours. Although with vps you get the similar environment like dedicated, however, they are shared, and anything that you share means slower than soul resource..
In terms, of security, there is an additional layer of access where web host can get into any part of the vps file. However, the only concern issue about vps form my point of view is the disk space, ram, and the bandwidth which is less than dedicated server.
VPS is much the same level with dedicated server, so you can create reseller accounts. However, if you are not familiar with VPS/server, you should be careful when choosing a VPS.
When a dedicated server becomes advantageous I would like to recommend a dedicated server. On the other hand dedicated servers are becomes so interesting than a VPS. However, you can start with a vps and upgrade package as you need. Once you cannot upgrade anymore, then buy a dedicated server.
First, you need to decide what sort of applications and websites you are planning to host on the server and then check what would be a better option for you. If you are looking forward to run heavy applications like Java/Tomcat which require a good amount of resources, a dedicated server is to be chosen, however, if you are looking forward to run normal applications and websites, you can choose VPSs.
Beginning with VPS is a good idea, VPS is a great alternative over the Dedicated server. Once your business grows and you may require more resources and the best performance, you can go with the dedicated server.
Here are the differences between the VPS vs Dedicated:
VPS Hosting
Multiple websites share a virtual private server (VPS), but each has its own set of resource limits for things like RAM and bandwidth. It also employs a virtualization (specialist software) to lend resources from other sites on the server if you're at capacity and others aren't.
Dedicated Hosting
The big cheese of the web hosting world is dedicated hosting. You get the complete wheel of Wensleydale cheese, not just a slice of stilton or a bit of cheddar. To put it another way, you have a full server to yourself.
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