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There are a number of reasons to switch to dedicated over virtual but the two most prominent ones are:
1) System resources: your site grows too large to be adequately supported on a multi user system where resources are shared so you need your own dedicated server to handle your increase in traffic.
2) Security and Stability: As your website becomes more profitable the increased cost of a dedicated server will be offset by the possible losses that you would incur if some other user on the system allowed the server to be exploited, or if they used too many resources that forced the server to crash. So you would be switching to a dedicated server to make sure that no other users bad decisions, actions, or even accidents have an affect on your site.
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Take Luck!
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