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VPS users still have access to the same resources and features as they would have otherwise, and they still have the freedom to install any application and make changes to those applications. Since you are not actually sharing any hardware, you will not have to be concerned about the physical server maintenance and security. The hosting company will need to worry about this.
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So that could be either a virtual machine - an operating system running inside another operating system, or a virtual private server - you rent a virtual server from a company, so you have your own internet-facing server running 24/7 relatively cheap (since it's not a real server, but one of many virtual server running on an actual server). I think he might have meant the later, since you'd have to run a snartnofe (btw I love that name) non stop to benefit from it.
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