A virtual private server (VPS) is a virtual machine sold as a service by an Internet hosting service. Virtual Dedicated Server (VDS) also works in a virtualized environment, but some CPU cores are dedicated to it, which is not the case with VPS.

A virtual private server runs its own copy of an operating system (OS), and clients can have superuser-level access to that operating system instance, so they can install almost any software running on that OS.

For many purposes it is functionally equivalent to a dedicated physical server and, being software defined, it can be created and configured much more easily.

A virtual server costs much less than an equivalent physical server. However, because virtual servers share the underlying physical hardware with other VPSes, performance can be lower.

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