Virtual Private Hosting (VPS)Virtual Private hosting is in the middle of the Virtual and Dedicated hosting.
With VPS you can your own virtual server, you can choose the Operating System, wich applications and services that run on it.
But it is on physical server with other Virtual Private Servers. Which means that the CPU and RAM is shared with others.
For most hosting this is not a problem. I you want to use applications that require a lot of processing power, perhaps dedicated hosting is a better option.
Versio.nl is a great hosting provider with VPS-plans that start from € 7.99.