A virtual private server (also referred to as virtual dedicated server or virtual server, and abbreviated VPS or VDS) is a method of partitioning one physical server computer into multiple servers that each has the appearance and capabilities of running on its own dedicated machine.

The physical server boots normally. It then runs a program that boots each virtual server within a virtualization environment (similar to an emulator). The virtual servers have no direct access to hardware and are usually booted from a disk image.

Virtual private servers bridge the gap between shared web hosting services and dedicated hosting services, giving independence from other customers of the VPS service in software terms but at less cost than a physical dedicated server. As a VPS runs its own copy of its operating system, customers have superuser-level access to the machine, and can install almost any software that runs on the OS. Certain software does not run well in a virtualized environment, including firewalls, anti-virus clients, and indeed virtualizers themselves; some VPS providers place further restrictions, but they are generally lax compared to those in shared hosting environments. Due to the number of virtualization clients typically run on a single machine, a VPS generally has limited processor time, RAM, and disk space.

Best for users that needs more security and availability than shared servers

VPS or Virtual Private Server is technology that separates the physical server into several independent hosting spaces or VPS-es, each isolated from the other. Each VPS has its own set of processes and resource management, and behaves exactly like a stand-alone server.

Retains its own configuration files for system and application software. Holds its own versions of system libraries and can modify existing ones.

Enjoy more value for your money - For the price of an equivalent 'shared' account, you can enjoy benefits of a dedicated server solution costing hundreds of dollars a month. That's because VPS technology lets you share the cost of hardware, network connectivity and system maintenance.

Virtual Hosting refers to an environment where multiple domains/sites are hosted on the same server. There are two ways to implement Virtual Hosting - 1) Shared and 2) Virtual Private Server (VPS).

Virtual Private Servers offer hosting customers a great balance between the control and power of a dedicated server, but at very affordable prices as compared to shared hosting. Virtual Private Servers, also known as VPS, Virtual Dedicated Server (VDS), or virtual server hosting, offer developers and web hosting resellers an excellent way of maximizing hosting investments.

VPS offers control, as many of the server resources available to end users are very similar to that of dedicated servers without the cost and expenses associated with utilizing a totally dedicated solution. Because of the control, VPS users are able to install their own applications, as well as use the feature of dedicated web servers, mail servers, database servers, and FTP servers.