What is VDS/VPS?
VDS (Virtual Dedicated Server) or VPS (Virtual Private Server) is a virtual server that software simulates the operation of a separate physical machine. In simple words: one "iron" server can be divided into several isolated virtual servers, and each of them works as an independent one - with its own resources, settings and processes.
Unlike ordinary virtual hosting (shared), where the environment is already defined by the provider and has limitations, on VPS/VDS you get much more freedom: you can install the necessary software, configure the server for your project and manage the system as you like.
What operating systems are used on VDS/VPS
Virtual servers are usually installed on Linux or Windows Server - that is, the same OS as on physical servers. This allows you to deploy standard server stacks (web server, databases, cache, task schedulers, etc.) without the "hosting" limitations of shared.
How VPS/VDS is more profitable than regular hosting
1) Root access and full control
On a VPS/VDS, you get root access, so you can control the server completely: install any packages, configure the web server, PHP/Node environment, security policies, users, access rights, etc.
2) You can host several sites on one server
Shared hosting often has a limit on the number of domains, databases or processes. Everything is easier on VPS/VDS: you can keep as many sites as server resources (CPU, RAM, disk) and your architecture allow.
3) Allows you to run additional services
VPS/VDS is convenient when you need not only "site files", but infrastructure nearby: cache (Redis), queues, schedulers, individual workers, proxy, monitoring, FTP/SFTP, etc. On shared, such things are often unavailable or strictly limited.
4) Suitable for resource-intensive and visited projects
If the site grows, there are background tasks, complex logic, heavy requests to the database or heavy load, VPS/VDS gives you the opportunity to optimize everything for yourself: from Nginx configuration to the caching scheme and starting workers.
5) Convenient for large amounts of data
A virtual server is often chosen when you need to store a lot of files: media, archives, backups, work exports — and still have control over access and storage structure.
6) Separate IP address
Typically, a VPS/VDS gets a dedicated IP address. This is useful when independence from "neighbors" on hosting is important, you need your own network settings, IP access or more predictable work of integrations.