A virtual private server (VPS, also referred to as Virtual Dedicated Server or VDS) is a method of partitioning a physical server computer into multiple servers that each has the appearance and capabilities of running on its own dedicated machine. Each virtual server can run its own full-fledged operating system, and each server can be independently rebooted.
A Virtual Private Server (VPS) is a hosting environment that combines the benefits of both shared hosting and dedicated hosting. It does this by creating a virtual server that runs inside a hardware server via a specially designed partition.
Each Virtual Private Server partition runs its own operating system in a secure and private environment and cannot be accessed or interrupted by its neighbors. This system gives you the same level of root access as a dedicated server whilst sharing the cost of the hardware. With a VPS you are virtually running your own server but at a fraction of the cost.