A virtual private server is also called as VPS is a machine, which hosts all the data and software needed to run a website or an application. It acts as a virtual or isolated environment on a physical server that is operated and owned by a cloud or web hosting provider. A virtual private server may offer second storage for data files. It is also a form of multi-tenant cloud hosting in which virtualized server resources are made available to an individual over the internet with the help of a cloud or hosting provider.

Each virtual private server is installed on a physical machine which is operated by the cloud or hosting provider and helps in running several VPSs. A virtual private server runs its own application and operating system (OS) which reserves its own portion of the machine’s resources. It also provides levels of flexibility, performance, and control somewhere between those provided by single-tenant dedicated hosting and multi-tenant shared hosting. Traditional hosting providers use the word VPS to differentiate it from shared hosting. Shared hosting is also a web hosting service in which all of the software and hardware resources of a physical machine which are shared equally between several users.

Virtual Private Server represents a good balance of flexibility, scalability, cost, and control between dedicated and shared hosting. Thus, it is suitable for e-commerce apps, which have spiky or moderate traffic, customer relationship management (CRM), and many more. A virtual private server may contain a File Transfer Protocol, Web Server Protocol, and a mail server program with several types of application software for blogging e-commerce. It also connects dedicated hosting services, and web hosting services by filling the gap between them. A Virtual Private Server allows users to install any type of software, which is capable of running on that operating system.

Now, most companies provide virtual private server hosting at an affordable price for users with the evolution of virtualization software and technology. A large number of virtual private servers may be installed on a single physical server with everyone running its own operating system.