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.

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.

There are 2 kinds of virtualizations: software based and hardware based. The main examples of software virtualization are Virtuozzo, HyperVM, Vserver and thst of hardware virtualization are Microsoft Virtual Server, VMware ESX Server, and Xen.

Virtual Private Servers, or VPS, offer an excellent solution when it comes to getting the power, resources, RAM and dedicated control you need from a dedicated server but at cheaper shared hosting prices. VPS Web Hosts and VPS Hosting providers offer excellent VPS hosting plans at prices between a Reseller hosting plan and a dedicated server.