With VPS hosting you have much more control over the software that your server is running. The only limits placed upon the software you can run are the total memory allocation but don't worry, Hardware is scalable anyway.
The perfect balance between price-point and computing power is a VPS hosting. The main physical servers will be housed in a Data Center, a portioned part of it calls VPS or VM. Also Dedicated allocation of CPU time, memory, disk space with an OS(operating system) were granted to Your own VPS.