A virtual private server or simply VPS is a virtual machine that is sold or rented as a service by an internet hosting service provider. A physical server is partitioned into numerous servers using virtualization technology. Every virtual server can run on its own operating system and acts independently. It somewhat resembles a dedicated hosting environment and is the most ideal hosting solution for organisations that do not need shared hosting. However, they do not have the resources and expertise in managing the server thus choose a VPS hosting server.
A virtual private server is also known as a virtual server because it works on virtualisation technology. It has its own operating system and installs and runs all software and applications managed by the OS. A virtual private server enables you to use the benefits of dedicated servers at a cost similar to shared hosting.