If yours is an expanding business, you may reach a junction when shared hosting does not suffice and dedicated hosting looks too expensive. The best thing to do at this time is to go for VPS hosting. VPS stands for Virtual Private Server, and as the term suggests, it is a virtual server that’s dedicated to you.
A physical server is partitioned into logical sections, each of which becomes a VPS. You can own one or more of these servers and have complete control on them. Since you don’t need to share these with other websites, all the resources are yours. You can go for more of these servers if the resources don’t suffice. In fact, you can choose to dedicate individual servers to specific tasks like e-mail and FTP.
The fact that a VPS is isolated from others makes it useful in a lot of ways. A VPS is commonly used as a sandbox. A sandbox is a testing environment. You can conduct various experiments with the sandbox without affecting the real system. You can simulate things you would like to implement in the real system, and carry them on the sandbox to see the results and figure out if it is feasible.
Now, VPS is ideal for being a sandbox. It can be kept isolated from other servers. A VPS can have all the features the system has and then one can experiment on this to find out how the real system will react.
Thus, apart from benefiting an organization by providing features similar to dedicated hosting, VPS hosting has some additional benefits.