My preference has been with the virtual private server in the dedicated vs. VPS debate, however sometimes I do wish I am on a dedicated server, where the resources are shared with no one but myself alone. Here is the evidence I have taken from one of my VPS a few weeks ago.

Matt Cutts of Google busted a myth regarding to dedicated IP address for websites. No, your website will not be penalised, nor rewarded, for being on a named-based virtual hosting, or on its own dedicated IP address.

Links to virtually hosted domains are treated the same as links to domains on dedicated IP addresses.

Funny that when you go and shop for dedicated servers or even VPS, you’ll find providers giving you “unlimited IP addresses” as long as you can justify it. What are other reasons people need more than one IP addresses for their web servers?

When a web site or hosted application out grown the shared hosting accounts, the natural progression is usually stepping up to a VPS or a dedicated server. I have seen quite a few times on WHT where people ask whether they should go to dedicated or virtual private server — usually those with budget slightly more than a good shared hosting, and looking for places to run their busy websites. Surprisingly I have seen a lot of people putting their preference on cheap dedicated servers.

I will go for a VPS, if I have limited budget, and have a busy site to host.