What is VPS = virtual private server?

What is VPS = virtual private server?

• Virtual private server (VPS) is a term used by Internet hosting services to refer to a virtual machine. The term is used for emphasizing that the virtual machine, although running in software on the same physical computer as other customers' virtual machines, is functionally equivalent to a separate physical computer, is dedicated to the individual customer's needs, has the privacy of a separate physical computer, and can be configured to run as a server computer (i.e. to run server software).