For many people Virtual Hosting means a heavy expenditure and for some its VIP hosting that they need it at higher level. But technically its not so. When the concept of hosting is clear to you, specially shared hosting, then you won't take much time to understand the concept of Dedicated Virtual hosting.

In Dedicated Virtual hosting, you are getting high resources for your website than shared hosting say the RAM, HDD, CPU usage and Data Transfer. Take it in this way, when you were in college you were sharing one flat with a few of your friends. But when you have your own family then you need separate flat. In the terms of website hosting when your website was static, it was consuming very less resources with limited database processing and very less traffic. But when your website grew bigger and heavy traffic started hitting your website, you needed a bit high CPU usage and good memory.

There are a many things that defines need of heavy resources, but being a user of shared hosting you don't know them. Below are some of those reasons mentioned. Take a look.

1. Your website is having heavy database. The size of database and access to that database commences the use of server resources heavily. Every time you access that database via your website, some processing is done on the server end that consumes your CPU and server memory (RAM). If access to that database is very frequent then you need some dedicated amount of RAM and CPU for your website, and this is what you get in a Virtual Hosting. 
2. Huge traffic. Traffic is something that no one can guarantee when you will it and in what volume. Once your website is hit with heavy traffic. it affects your website with heavy processing and high consumption of bandwidth. But within sometime you get an idea of how much bandwidth and how many average no. of visitors you are getting.
3. Application hosting. If you are using any application within your organization and need to host it, then you need some specific access and authorities at the server end. These includes specific port to be opened. root access to the server, some specific scripts to be installed, etc. and these features are not provided in any shared hosting.
4. Privacy conscious. Many people after getting the concept of Shared Hosting, feel that they must have their own entry to the server and that it must not be shared or enjoyed by any other user. Whether they need or not dedicated server resources they want that the server should be limited to their usage only that whenever they need high usage they should be free to use it.
5. Hosting is your business. Here its related with the Resellers. People who are reselling hosting space to their clients are more sensitive towards the server uptime, speed and response. In this case however its not said that they MUST go with Dedicated Hosting but it is recommended. Being on an individual hosting platform, they can enjoy usage of server as they want and is a plus point for them that they can think beyond hosting websites only. 
6. Data Transfer. Data Transfer is most of the times understood with traffic. Data transfer is consumed not only by the traffic but also by the website owner too. Every time you are uploading or downloading over the server its consuming data transfer. Sometimes its in MB and sometimes its in GB. If you are on a shared platform then you may not get that much data transfer. And again it is not recommended to stay on a shared platform if you have heavy usage of Data Transfer.

Above points specify the basic reasons for moving to the Dedicated Virtual Hosting and one should keep them in mind even if its first time he is hosting his website. You can start with the shared hosting in the start and can gradually move to the Dedicated platform but it can be a little headache to move your complete website. Later we will be discussing more on other terminologies related to Dedicated Virtual Hosting required at the time of moving towards this VIP platform.