VPS Hosting are cheaper option for dedicated server, if you are short at your budget and you don’t want much higher server configuration for your server then VPS would be the best choice for you.  Although there are few disadvantages of using a VPS.
More about VPS  : All VPS server are setup on a single physical server which is of high configuration, your account would be sharing same server resources, space & bandwidth. All VPS’s are isolated from other and have their own OS, performance of one server will never interfere with that of another virtual private server thus VPS can be a affordable option for get good server resources with features of a dedicated server but still there are few disadvantages of getting a VPS, one major drawback of using VPS arise when it comes for maintenance.  All VPS servers have their own OS and softwares thus master physical node will have to take care of all such operating systems without any fail. Master control panel will have to ensure that all servers are delivered with high performance and maximum uptime.
All VPS’s are allotted limited server resources from the master node, so in case if your website is getting much high traffic you may get sufficient server resources which may result in slowdown of your site and thus will affect your virtual server as allotted server resources may not be able to meet the challenge for more resources, your server may get into halt state in such high traffic state.
Usually all webhosting service provider will setup multiple VPS hosting accounts on same master node thus there can be too many virtual servers connected to a single server, this master node will handle all request and will integrate them properly which can be fail at times. Thus mismanagement of master node by your webhost can lead to degrading the virtual server and thus there can be violation of security and isolation policies. In this case your server wont be secure anymore.

Though there are few disadvantages of using VPS’s there are many more advantages as compare to disadvantages, also VPS are much more cheap then dedicated server offering you same kind of functionality and freedom [ within limit ] so virtual private hosting is more preferred hosting option.

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