Benefits of VPS
Flexibility of a dedicated server Users share system resources, such as the CPU and memory, but unlike shared hosting (a virtual host on a shared hardware server ) the file system is fully partitioned. This means you get a guaranteed share of the server's resources, while full root access allows you to completely customise the virtual server, adding or changing modules and installing your own software.
Highly cost effective
Because a single physical server is shared between several users, the cost of a virtual server is small when compared to the price of a dedicated server. But the level of flexibility is similar (although you'll still need a dedicated server for really demanding applications or high-traffic sites).
Security
A VPS account (disk space, memory) is totally isolated from other VPS accounts, because each VPS account is located in its own "Virtual Environment". Other VPS accounts can not access your files nor data in the memory. You will have your own copy of apache, dns servers, database server, and user accounts. This VPS security model makes it ideal for secure credit card processing in e-commerce applications.
Customization
VPS users get full root access. This allows server customization - you get to install your own software/application and manage your server as you would on a dedicated server.
Affordable
VPS is cheap. You’ll get features like dedicated servers but cost a lot more cheaper (in most of the case, 50% less) than a dedicated hosting plan. You can compare the pricing and features of different VPS hosting here