Virtual Private Servers (VPS) offer an affordable solution for users seeking dedicated server resources without the high costs of dedicated servers. They provide a hybrid model that combines elements of both shared and dedicated servers, leveraging virtualization technology to isolate server resources for multiple hosted sites. There are two types of VPS: managed and unmanaged, with the former being maintained by the service provider while the latter requires user management, both options delivering enhanced speed, performance, and security for hosted websites.