Most hosting customers would rather have complete control of their server environments. They don't want to be hosted on a server with tens or hundreds of other users, who could easily use up all the resources or cause the server environment to be unstable. But at the same time most websites don't need a dedicated server. The Virtual Private Server (VPS) alternative is a very attractive niche hosting solution for a fairly large chunk of web hosting clients who would like the stability of a dedicated server but on a smaller scale. With the resources setup in such a way that each person can only use what is allocated to them, your site will be more consistent because it will always have the same amount of access to the CPU, memory, and bandwidth. Virtual Private Servers are also more secure since even as you share the memory and CPU time, you are allocated your own file system. If a website on the server is hacked, the hackers will only have access to that particular file system and would not harm the other websites. A VPS is also much cheaper than a dedicated server.
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