A key aspect of VPS internet hosting is its virtualization capabilities. With VPS, the hosting provider divides each physical server into multiple smaller virtual servers with private and dedicated RAM and hard drive space. This provides site owners with a more isolated hosting environment without disruptions from other clients sharing server space.
A VPS runs its own copy of an operating system (OS), and customers may have superuser-level access to that operating system instance, so they can install almost any software that runs on that OS. For many purposes they are functionally equivalent to a dedicated physical server, and being software-defined, are able to be much more easily created and configured. They are priced much lower than an equivalent physical server. However, as they share the underlying physical hardware with other VPSes, performance may be lower, depending on the workload of any other executing virtual machines.[1]