VPS (Virtual Dedicated Servers) are the servers with root access. If you want full root access / SSH access/shell access then you need VPS. In vps you need purchase cpanel separately. whereas in Cloud Hosting you will get cpanel and everything like cpanel but with more CPU and RAM resources.
If your website is getting more traffic which shared hosting is unable to handle then we will recommend cloud hosting.
If your website need special access which is not allowed in shared hosting then you must go with VPS (Virtual Server)