The difference between VPS and dedicated hosting

The term VPS (Virtual Private Server) and VDS (Virtual Dedicated Server) are almost same, as they are equivalent in many ways.
VPS is the first step for leaving shared hosting and a step before dedicated server. It is a go between a Shared hosting server and a dedicated server. The word “Virtual” means that it is not real. It is a shared hosting server with a slice of its own dedicated CPU, RAM and disk space. You can reboot your VPS anytime and when you want without disturbing anyone else’s server.
VPS is same as dedicated server in terms of the functions it offers like SSH access, administrative control, the flexibility to install custom applications and soft wares at an affordable price when compared to a dedicated server.
In lay man way of explaining the difference between the two is to imagine the dedicated server to be a mansion that you own for yourself it is up to you if you want to share it or use it completely by yourself. But a Virtual private server is like living in an apartment. You have a privacy of your own room but you still are a part of many apartments put together (shared).
One of the main differences between them is the ability to run multiple operating systems, it is done easily by a dedicated server but it is not possible in a VPS.
A VPS has a strictly defined slice of the CPU, RAM and disk space mostly; you cannot go beyond what is allocated for you. You will have a minimum allocation no matter how crowded the server is. If you are the only customer on the machine you have the liberty to use more or less all the resources it has.
Server level customization is allowed in both VPS and dedicated servers. Only the CPU is shared in VPS while in dedicated it is dedicated. OS, Panel and LAMP are some of the server level soft ware’s that are pre-installations that vary from provider to provider. The support levels are also varied by provider.