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Shared hosting is a form of web hosting in which many web hosting customers share a single (virtual or physical) server.
The customers in a shared hosting environment are partitioned away form each other, so (when everything goes well), they have absolutely no access to each other's files, and are ideally not even aware of each other.
Shared hosting allows for a high customer-to-hardware density, which makes it a very inexpensive way to run a website — shared hosting is the cheapest form of hosting, and relatively high-quality shared hosting plans can be had for less than $10/month (sometimes less than $5/month, with a good coupon).
The problem with shared hosting is that a limited pool of computer resources is being shared by a large number of customers. This can cause slow-downs and site outages if one or more sites on a shared hosting server gets a lot a of traffic.
A VPS is a virtual private server. It is a type of hosting plan in which you, the customer, has complete control over a virtual server. Often (and increasingly so) the VPS runs on top of cloud infrastructure (in other words — a large pool of networked computing resources, rather than a single piece of hardware).
One way to think about hosting plans is that a shared hosting plan is like renting a small apartment and a dedicated server is like a house. From this perspective, a VPS plan is like a condo.
With a VPS plan you get most of the benefits of a dedicated server, at a much lower cost. In the case of cloud-based VPS hosting, you also have the ability to scale up available resources quickly as the need increases.
Dedicated server hosting is a type of web hosting plan where you rent an actual server (a rack-mounted, internet-connected computer).
Most people who need a highly configurable web hosting server with full root access are better off with a VPS hosting plan. They are usually less expensive, and — if it is a cloud-based VPS plan — easier to scale.
The use-cases that specifically for a dedicated server plan, as opposed to a VPS plan, are increasingly rare — and if you have one, you probably know about it already.
The most likely reasons to need a dedicated server plan have to do with security and regulatory compliance — VPS plans may not satisfy certain types of privacy laws, such as HIPAA.
Apache is a web server.
Apache is the most common web server in current use. It open source and freely available to use without cost.
Apache forms the "A" in the somewhat famous LAMP stack: Linux, Apache, MySQL, PHP. This is the software platform most commonly used for many popular web applications, such as WordPress, Drupal, and Joomla.
Nginx is a web server.
Nginx is free and open source, and is one of the more popular web servers in common use. Many people see it as a strong alternative to the more commonly used Apache web server.
Incidentally, Nginx is pronounced like "engine-ex."
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