The main difference between an unmanaged and managed VPS is that with you have control over the server in an unmanaged VPS service. This requires a lot of technical knowledge and if you do not know what you are doing or do not have the time then you can hire the services of someone that does. You will need to install and manage the software necessary for your website or programming to run as the owner of the server may only deal with hardware issues.
The cost of using an unmanaged VPS is very affordable when compared to a managed VPS though large companies may actually find it more economically to use a managed VPS. However this only applies to companies that can turn over a large profit. If you are a small company that has in house capabilities or need things to run in real time than an unmanaged VPS will probably offer you the best options.
There are three main factors that will guide your decision when choosing a VPS; the amount of time it takes to deal with problems and complications, your profits and your technical knowhow. If you have any questions then you should address them to VPS companies or others that use VPS hosting. Read reviews written about the other companies as well to see how satisfied users are.
Basically the only thing that the server provider will do on unmanaged VPS is any required reboots, maintenance of hardware and network. Many times there are reboot caps and you will be responsible for all of the software even if the server should become compromised. Many times the owners will help but you may be charged administration fees. One good company that provides VPS hosting is Hostgator. There VPS service is actually cheaper than their reseller hosting.
Unmanaged hosting tends to much less expensive than managed hosting and is more comparable to unmetered costing. If you are going to use unmanaged hosting then see what type of control you have when dealing with the server hardware. You want to be able to perform a reboot when you need it and not when the owner can get around to it.