Yes, your Redis instance runs on your Pagely VPS and is shared amongst all of the apps you are running on your dedicated server. In terms of our settings, on a larger VPS plan we can allot more memory to Redis if need be (within reason, of course).
Should you need a standalone Redis node with more memory, we have options for you at an additional fee. Our expert Ops team can always examine supporting a special configuration depending on your needs.
Check out our flexible range of fully managed VPS hosting plans specially designed around WordPress performance and security.