VPS is the abbreviation for the term Virtual Private Server. As this name suggests, there is a difference between VPS hosting and shared hosting. The system can run multiple virtual machines (the VPS) on a physical server. So you can use all the advantages and features of a dedicated server, just in a virtual form. Virtual machines have long been used by computer giants like IBM and HP, but VPS hosting is also gaining in popularity among Internet hosting providers.
Should you need more speed and performance you can also consider switching to an ssd-powered VPS package which has the same advantages as a VPS but offers faster performance due to the presence of SSD hard drives. VPS SSD is highly recommended for websites that use a lot of disk caching, for example WordPress websites with the w3 Total Cache plugin
Partitioning a single server to appear as multiple servers has been increasingly common on microcomputers since the launch of VMware ESX Server in 2001. The physical server typically runs a hypervisor which is tasked with creating, releasing, and managing the resources of "guest" operating systems, or virtual machines. These guest operating systems are allocated a share of resources of the physical server, typically in a manner in which the guest is not aware of any other physical resources save for those allocated to it by the hypervisor. As a VPS runs its own copy of its operating system, customers have superuser-level access to that operating system instance, and can install almost any software that runs on the OS; however, due to the number of virtualization clients typically running on a single machine, a VPS generally has limited processor time, RAM, and disk space.