On the topic of dedicated hosting, many web hosting services also offer managed hosting. This type of hosting sees the web host act as your IT department, handling a server's maintenance and upkeep. This hosting option is something that you'd typically find with dedicated servers, so it's a business-centric addition. Naturally, it adds a few bucks to the hosting cost, but nothing that should break the bank if you have the resources for a dedicated server.
In housing terms, VPS hosting is like renting your own apartment in a larger building. You're much more isolated than in the roommate situation mentioned above; it's still possible that a neighboring apartment could causes annoyance for you, but far less likely. In web hosting terms, Site A's traffic surge won't have nearly as much impact on Site B or Site C. As you'd expect, VPS hosting costs more than shared hosting. You'll pay roughly $20 to $60 per month.