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A VPS is like renting an apartment in a busy building; resources are private but infrastructures are shared. A VDS is more like leasing an entire floor—you still live in the same building (virtualization layer) but no one else can use your space or utilities.
If you need predictable, near-bare-metal performance with the features of a VPS and strict isolation, choose a VDS. If flexibility and lower cost matter more than absolute performance consistency, a VPS is usually the right fit.