The Virtual Private Server (VPS) is the best stopover if you are planning to move from the shared server to the dedicated server. There is also something called the semi-dedicated server that people go for when they want more than what the shared server offers but don’t want to invest in a dedicated server yet.
The dedicated server is one that you own. The semi-dedicated server is not yours. It belongs to a hosting company. A semi-dedicated server is not completely dedicated to you, but it offers you control. You get root access and control over a part of the server. Like a shared server, the semi-dedicated server, too, requires you to share it with others. But here, you get a better share. The sharing happens with only 5, 10, 20 or so websites, making life easier for you.
A semi-dedicated server provides you better performance than a shared server now that you are sharing your resources with only a few websites. You have more bandwidth and more disk space with you now along with control. You can choose as many applications as you want.
In terms of cost, too, a semi-dedicated server works reasonably well, offering features similar to a dedicated server at a low cost. And the server is fully-managed. The company hosting the server takes care of the management of the semi-dedicated server.
With a semi-dedicated server, you get an idea of your hosting needs in the future. Trying this server will let you know if it is time to get a dedicated server.