What is the deal with VPS and RAM?

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The review of this web host was started by midwestbonsai on 2009-03-27 23:14:04:

Hey folks,

Sorry for totally "stupid" question but I really need to know.

What is the deal with VPS and RAM? Here is my situation.

I have a HostGator shared hosting account and a MediaTemple Grid service account with a MySQL grid container.

Now the mediatemple is $40 a month and the hostgator is $10. Media Temple offers a VPS with 256MB of ram with 80GB less space for $50. But it would let me host everything in one place (I need to keep the hostgator site separate with separate server access).

Now 256MB of RAM seems like it isn’t enough to do much of anything.

Am I just thinking too hard or could someone explain it to me.

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