Built on a virtualization platform that is fully dedicated, having a KVM VPS is the next best thing after a whole server when in need of a dedicated server environment but you do not want to pay for the extra resources that you will never use.
You can host the same websites or applications as you would do on a dedicated server, but by buying the VPS with the amount of resources you need, you can maximize resource usage allowing you to get a much better price without any performance drop.