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Part of the answer is dependent on how much you are concerned about cost, and your level of expertise. VPS will probably cost less, plus you can make use of customer support in a way that you cannot with a dedicated server. You can also choose the amount of resources you need, and pay accordingly, with the ability to scale up as growth dictates. So if you think operating a dedicated server may be over you head in terms of time and effort, VPS might be the way to go. On the other hand, if you have the needs, resources and abilities, a dedicated server allows you to customize your hardware as you desire to meet specific requirements.