Many Web hosting companies use virtual servers for their clients, as they can offer a viable and a cost-efficient service, through it. As Virtual Servers doesn’t use the entire resources on its host computer, they can be dedicated for individual client server applications. Since, the web hosting company hosts small virtual servers on a single physical server, the cost of web hosting can be achieved at lower costs. Moreover, there will be no change in the working and services offered by the websites, which are hosted on virtual servers. As they get the same effect of being hosted on dedicated servers.
Managed VPS hosting obviously varies from one hosting provider to another, but if you do not possess a vast amount of technical knowledge and ability, this “hands off” approach is definitely your most feasible option.  If you have little to no experience running or maintaining a server, managed cloud VPS hosting can be very beneficial to you because the web host typically takes care of the software and system updates that you request, and in some cases, even does them automatically for you as they are needed.
Sometimes you need more power than an entry-level web hosting service can provide. If you're looking to take your business online and want to build your website on a server that offers more power, stability, and flexibility than shared hosting, but you don't want to pay the higher cost of dedicated hosting, VPS, or virtual private server hosting, may be the perfect middle-of-the-road service tier for your business.
Another benefit of virtualizing servers is that they are no longer tied to a hardware platform. This provides the ability to virtually expand or upgrade (upgrade) the hardware platform during operation without significant downtime (~ 1 second downtime). Also, a hardware problem does not result in longer downtime (assuming existing spare capacity) because the VPS can be restarted quickly on a different hardware.
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.[2]
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