The VPS hosting gives you the functionality and options of the dedicated server, but at a much lower price. You have full control over your virtual (VPS) server including root access to install and change everything – an option that you don’t have if you use shared hosting. Since the VPS is isolated and this allows you to runs scripts that are prohibited for shared hosting as e-mail lists and since you don’t share your IP address with anyone, there’s no reason to worry that he may be blacklisted. The VPS hosting is also very suitable if you are reseller and you need a reseller hosting.