Most people are clueless about the virtual servers hosting and how they actually work on the shared environment. It is a known fact that thousand and more number of users tend to use a server at a time. In such circumstances, each user is allocated with a designated amount of disk space, bandwidth, CPU allocation, memory and Operating System, which can be used on the server. All the Virtual Private Server users share the same CPU and RAM and think that, they have dedicated set of hardware. Virtual Server software is loaded onto the physical system and from then, a virtual server is ready to be used.
A Hostway|HOSTING Virtual Private Server (VPS) solution puts you on a server with other clients, where each client shares the cost of running the server. Unlike shared hosting (e.g., FlexCloud), a virtual private server solution gives each client its own partitioned server area. You manage your own operating system (Linux or Windows), storage space, and memory to ensure your site’s performance and stability.
Virtual private servers connect shared Web hosting services and dedicated hosting services by filling the gap between them. Because virtual dedicated servers can have their own copy of the operating system, VPS provides the user with super-user privileges in the operating system. VPS enables the user to install any kind of software that is capable of running on that operating system.

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]