VPS is good if you want dedicated amount of memory and cpu at all times. But the problem is, having a good chunk of dedicated memory in a VPS plan, like 2 GB RAM, will cost you just as much as having your own dedicated server.
You can find a dedicated server for dual core with 2 GB memory for less than $140/month with unmetered 10mbps bandwidth.
And for very high traffic sites, VPS just can not handle a site with 250 MB of Ram or 512 MB of RAM. You need atleast 2 GB to 4 GB to function well.
But for small traffic sites, VPS is fine. But make sure you get a provider with a fast network, fast cpu and a lot of memory. I think network is crucial here, make sure they don't have an overloaded network, otherwise, page loading will be slow.
If performance is your thing, dedicated server is the way to go. But keep in mind, if you know nothing about linux server, you should go with a provider that has server management, so they can implement all the latest patches and server security programs for you. Otherwise, it is guaranteed to be hacked =p






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