What is a server? We got used to thinking that a server is a powerful machine placed in the provider's server room. Special programs are installed on this server enabling to correctly process requests from remote computers and for example, display web-sites.
Is that true? Half-and-half.
Beside traditional dedicated servers, there are virtual ones. One server contains several smaller servers. They exist virtually, but have the same functionality as usual dedicated servers at lower prices.
The dedicated server may be more powerful. And you won't be able to use the hardware of the virtual server. These are their differences

VDS Benefits

• Convenient control panel for VDS server;
  
• A full root-access to the management server at SSH;
  
• Ability to configure any parameters of the system and applications;
  
• Possibility to install their version of system libraries or modify existing ones;
  
• Dedicated IP-address, to manage the ports, filters and routing rules;
  
• Operational increasing productivity and resource VPS server (extra charge, upon request);
  
• Round the clock technical support at the level of requests in the ticket system with the web site;
  
• Favorable conditions and the lack of hidden fees;
  
• Ability to use multifunction panel ISP Manager Lite / Pro:
  ISP Manager version Lite (+10 Eur/mon)
  ISP Manager version Pro (+15 Eur/mon)
  
• All the management, administration, VPS server, installing and modifying the software directly to you or you can order services from our experts (extra fee);
  
• Report on traffic online.