Here is an interesting differentiation between VPS and dedicated server:
A virtual private server is like living in an apartment or a hotel room. You have got your own walls, door and windows. You have your own privacy and you can do anything you want in your space. Needless to say, that you are sharing the basic infrastructure with the other residences in the building.
Whereas a dedicated server owning your own mansion and living in it, you can use it as per your choice, it is completely up to you.
