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.
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 [...]