A Virtual Private Server (VPS) uses virtualization software to partition physical servers into multiple "virtual" servers—each having the ability to run its own operating system and applications. VPS is not for everyone, but is quickly becoming the hosting preference of choice for advanced Web developers who require root access to the server to run their own software.

Configure your virtual machine size and performance to handle the largest business needs. GS-series virtual machines deliver fast I/O performance with extremely low latencies by using the disk performance of Azure Premium Storage. Dv2-series virtual machines are perfect for applications that demand faster CPUs, better local disk performance, and higher memory.

VPS hosting contains the best elements of shared hosting and dedicated hosting services. Like shared hosting, VPS hosting puts your website on a server that also has other sites running on it, except that there are fewer sites per server. The sites share the cost of running on the server, which results in a monthly or yearly charge that's less than the relatively high price tag of dedicated hosting.

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.
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.
You can use Amazon VPC to host multi-tier web applications and strictly enforce access and security restrictions between your webservers, application servers, and databases. You can launch webservers in a publicly accessible subnet and application servers and databases in non-publically accessible subnets. The application servers and databases can’t be directly accessed from the Internet, but they can still access the Internet via a NAT gateway to download patches, for example. You can control access between the servers and subnets using inbound and outbound packet filtering provided by network access control lists and security groups. To create a VPC that supports this use case, you can select "VPC with Public and Private Subnets" in the Amazon VPC console wizard.
The force driving server virtualization is similar to that which led to the development of time-sharing and multiprogramming in the past. Although the resources are still shared, as under the time-sharing model, virtualization provides a higher level of security, dependent on the type of virtualization used, as the individual virtual servers are mostly isolated from each other and may run their own full-fledged operating system which can be independently rebooted as a virtual instance.
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