Short answer: VPS are (usually) cheaper, and you have total control. Longer answer: There are basically two approaches to scaling software: Either you build/si

Short answer: VPS are (usually) cheaper, and you have total control. Longer answer: There are basically two approaches to scaling software: Either you build/simulate better computers (vertical scaling), or you deploy more of them (horizontal scaling). Dedicated hardware lets you build or simulate having a better computer (e.g. FPGAs, or using a network driver that is ideal for your traffic patterns, or a heavily tuned JVM). On the other hand, the cloud lets you quickly add (or remove) computers in response to service demand. VPSs just split the difference (though they are usually closer to the vertical side of the equation).