VPS Hosting is also known as Virtual Private Server Hosting. This type of hosting is generally uses more powerful hardware or resources and takes its name from the fact that each server uses virtualization technology to allow and operate independently while multiple websites are being stored on the same physical hardware. Each server has its own operating system and runs almost nearly as a dedicated server.
Using a VPS service is like living in a building with a larger room of space than Shared Hosting and free to design according to taste, not limited by rules, free to invite anyone into the building and free to use all the available facilities as per package. There are 2 basic types of VPS Hosting:
Managed VPS is also known as Managed Virtual Private Server. This is a type of web hosting which configured and managed by the hosting provider. Client does not need a technical skill or knowledge to build a web server since the hosting company takes care of any technical tasks related to availability and performance of server.
VPS Provider will make sure it is up-to-date system software, remains secure, and ensure that resources run according to package. Users will have administrative access through a control panel to do whatever users want and focuses more exclusively to run their websites.
Unmanaged VPS is also known as Self-Managed Virtual Private Server, which means a server which entirely managed and maintained by the users itself. The hosting provider only responsible for is the availability of a functional physical server, but generally they provide a free Linux family of operating system to install and reinstall again and over again.
In Short, some technical knowledge, skill or experience related to run this server is needed, because they will have to start and build from the beginning including choose and install Operating System they prefer and also include other custom softwares. This type of hosting is much more cheaper than Managed VPS.