VPS has clear advantages for website hosting as it offers a huge level of flexibility over shared website hosting, without stretching your budget to a dedicated server. A VPS offers you an environment for development and testing for your website hosting. For example, you could choose to have a VPS dedicated to testing and a separate VPS running simultaneously for your live or production websites. Without the need for two physical servers you can safely debug software, install major changes and software updates in a secure environment without affecting your live websites. You can also use a VPS for back-up or file storage. It's easy to switch between virtual servers so you can protect and maintain website visibility online even while undergoing extensive development work.

Hello Joe, I don’t do much techie work for myself – my husband it the geek and runs the office. But this is very interesting. So based on what I can tell, I’m able to install a hypervisor software on my Windows or Mac computer and then install another operating system. This is amazing and I’m not sure we offer this pc service for our customers. I will need to try this with virtualbox on my new Dell laptop.
koding.com has a free VM running Ubuntu. The specs are pretty good, 1 gig memory for example. They have a terminal online you can access through their website, or use SSH. The VM will go to sleep approximately 20 minutes after you log out. The reason is to discourage users from running live production code on the VM. The VM resides behind a proxy. Running web servers that only speak HTTP (port 80) should work just fine, but I think you'll get into a lot of trouble whenever you want to work directly with other ports. Many mind-like alternatives offer similar setups. Good luck!

f. In a few minutes, the Instance State column on your instance will change to "running" and a Public IP address will be shown. You can refresh these Instance State columns by pressing the refresh button on the right just above the table. Copy the Public IP address of your AWS instance, so you can use it when we connect to the instance using SSH in Step 4.
If you want to customize your Web hosting server or need more technical flexibility than shared hosting, but the price tag of a dedicated server is prohibitive, then a VPS can be a brilliant option. You get full root-level access to install and delete software, set permissions, create accounts and determine your customized server environment – but because you are still sharing hardware you don't have to be concerned about the physical server maintenance and security.
For companies that implement certain programs and scripting languages, such as PHP, MySQL, or Perl in combination with other software programs, Linux VPS hosting is an excellent option. JaguarPC’s VPS hosting services are especially beneficial for small to medium-sized businesses. Through a VPS, you and your company will enjoy a secure, affordable, and fully scalable pool of resources.

Virtual private server (VPS) hosting is a type of web hosting that uses software to emulate multiple servers on a single virtual host. Even though the websites are hosted on the same physical machine, VPS hosting allows each server to be entirely independent, treating them as if each site were on its own separate machine. One advantage of VPS is that it fits in well with other hosting plans. A virtual hosting plan gives clients another hosting option that fits between most shared hosting and dedicated hosting pans.

Both single-machine and cloud-based VPSes are managed using a software program called a hypervisor. The machine that runs the hypervisor is called the host machine and the individual virtual private servers are called guest machines or guest instances. The hypervisor can start and stop the virtual machines and allocates system resources, such as CPU, memory, and disk storage to each VPS.
Unmetered hosting is generally offered with no limit on the amount of data-transferred on a fixed bandwidth line. Usually, unmetered hosting is offered with 10 Mbit/s, 100 Mbit/s or 1000 Mbit/s (with some as high as 10Gbit/s). This means that the customer is theoretically able to use ~3 TB on 10 Mbit/s or up to ~300 TB on a 1000 Mbit/s line per month, although in practice the values will be significantly less. In a virtual private server, this will be shared bandwidth and a fair usage policy should be involved. Unlimited hosting is also commonly marketed but generally limited by acceptable usage policies and terms of service. Offers of unlimited disk space and bandwidth are always false due to cost, carrier capacities and technological boundaries.[3]