Resources Dedicated To Your Instance
Virtually Dedicated To You
As the name implies, a VDS is a virtualised version of a bare metal dedicated server.
The resources available to your instance are pinned to your instance reserving them from the host node exclusively for use with your instance.
The resources are available on demand the moment your instance request it.
VPS vs VDS
Unlike a VDS, a VPS resides within a shared environment just like web hosting.
The resources allocated for your instance are all shared with the exception of storage in most cases.
This means, if many VPS are requesting compute at the same time, there will be a wait time for other instances before being able to access the resources being held by other VPS.
This does not make VPS a bad choice but does mean assessing the requirements of your project are a must to be sure the correct plan is chosen.
Virtual Servers run copies of their own operating system (OS). Customers may have superuser-level access to that operating system instance, so they can install almost any software that runs on that OS. For many purposes, they are functionally equivalent to a bare metal dedicated physical server, and being software-defined, are able to be much more easily created and configured.
Virtual Servers are priced much lower than an equivalent physical server. However, as they share the underlying physical hardware with other virtual servers, performance may be lower, depending on the workload of any other executing virtual machines.