A VPS is a private, virtual server that exists on a larger physical server. However, unlike shared hosting, you have a guaranteed allotment of system resources. Even if there is a much bigger website than yours on hosted on the larger physical server, it will not affect your site since you are always guaranteed the system resources that you’re paying for. Provided that you don’t overload your VPS, your website(s) will perform much better. If your sites grow in size and traffic, you can easily upgrade your VPS to a more powerful one in a matter of minutes with no migration required.