A dedicated server
is a large physical server which is taken by a single entity on lease exclusively for their individual use. The sole user has complete control over the server and the entire resources are at their disposal for their website. The user is normally a well-established business that has constant flow of high volume of visitors. No other entity is allowed on the server and the users have powers to configure it the way they wish. They are allowed to install any software applications they want and the host extends round the clock dedicated support. Dedicated server is more expensive than the VPS or shared server.
is created by the partitioning of a powerful physical server into several smaller virtual machines. Although they share the server each business gets dedicated resources. They are independent of one another and are not affected by the activities of the others. VPS servers are scalable and can manage traffic spikes with ease. VPS offers same features of a dedicated server but at far lower cost and with lower quantity of resources.