There is an enormous difference between a shared host and a Virtual private server (VPS) host. Your choice should be dependent upon your needs. Personally, I wouldn’t sign any contract with a company for an unreasonable time (we’re talking years); there are variables involved in long term contracts. Most entry rates for hosts are ploys to get your business and often due change. In the long, run rates may increase, operating costs and other variables that can’t be predicted.
VPS hosting will give you more server resources, as in a certain amount of dedicated ram and CPU resources. When you exceeded your shared hosting capability VPS would be the most reasonable and cost efficient step. One great thing about Virtual private server is that you can setup multiple domains and give them their own separate logins. Thus giving you the power to run your own hosting company or just share your space with friends and family.
If one is changing from a shared host to a VPS host you should know that now you the can restart “your” server. You can even change settings that you probably never seen before such as, php.ini files and customize the server as in shared hosting you were not able to access this content. Memory and space needs will differ on a case to case basis. The type of business, blog, and/or website you are intending to operate will dictate you choice in Virtual Private Servers. You can contact your provider as your needs change, ask for more disk space, ram, and CPU resources as your site grows. This can be done without having to move your site to a “better” server as you would have to do if you where on a shared host.
Remember that a Virtual private server is a method of partitioning one physical server into multiple servers. Each one of them has the appearance and capabilities as if it were running its own dedicated server, giving you almost the full capabilities of a dedicated server. Most VPS are used to be a replacement for a reseller hosting plan.
With VPS you get the same features of a reseller, plan but also the flexibility to offer reseller hosting plans making you a master reseller. You would have the ability to modify and upgrade software applications to your liking, specifications and exact needs. The hardware is still shared amongst the server, but with a separate operating environment. You’re also guaranteed minimum amount of processor and memory resources. If all you need is a shared host then go for it, but if you that doesn’t do it for you any more go with a Virtual private server.