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The difference is that with normal shared hosting you are buying web space on a server. You can't install your own software and you have lower limits for your website. This is fine if you're just running a website that doesn't have huge amounts of traffic and don't need custom software. It's a lot cheaper to use shared hosting for most websites and a lot easier to use since you'll usually have access to a control panel such as cPanel.
If you have a VPS then you can install anything you wish however unless you have a managed VPS you're left to install everything yourself. This means purchasing your own licenses for cPanel, DirectAdmin etc and then installing everything and keeping it secure. The benefit is that although it's still a shared service you'll have your own slice of the servers CPU, RAM etc and have a lot more control over everything.
Be it managed VPS hosting or any other normal VPS hosting the advantage is the same. Let us have a quick look at some of the top advantages.
1. Root access: VPS hosting is a bridge between dedicated and shared hosting as it includes features of both. With VPS hosting the server is isolated from other servers. You have complete root access to manage your server and its resources.
2. Security: VPS hosting is always isolated like dedicated hosting, it provides top-notch security to the website. The entire website indeed shares the same physical server, as the IP address is dedicated to the individual server.
3. Performance: VPS hosting comes with HDD and SSD hard drive, however, every business owner opts for SSD VPS hosting as its benefits outweigh that of HDD, and also SSD VPS hosting improves the website loading speed and also improves the performance of the website.
Managed VPS Hosting
• Server maintenance and up-gradation is taken care of by hosting provider.
• It is slightly expensive cost wise but it is always the best choice for the beginners.
Unmanaged VPS hosting
• Your hosting provider will only take care of maintaining the physical server.