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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KVM’s popularity has been moving up on the list of virtual machine software’s due to its success with OpenStack. Marrying the 2 products together gives similar functionality as VMware vSphere, although there are some limitations with hosting Windows VMs, which are now taken care of by OpenStack’s ability to also support Hyper-V and ESXi. Click Here To Download KVM.
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Amazon VPC provides advanced security features, such as security groups and network access control lists, to enable inbound and outbound filtering at the instance level and subnet level. In addition, you can store data in Amazon S3 and restrict access so that it’s only accessible from instances in your VPC. Optionally, you can also choose to launch Dedicated Instances which run on hardware dedicated to a single customer for additional isolation.
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With support for Linux, Windows Server, SQL Server, Oracle, IBM, and SAP, Azure Virtual Machines gives you the flexibility of virtualization for a wide range of computing solutions—development and testing, running applications, and extending your datacenter. It’s the freedom of open-source software configured the way you need it. It’s as if it was another rack in your datacenter, giving you the power to deploy an application in seconds instead of weeks.
VPS can be a perfect solution for businesses that want many of the features of a dedicated server but don't have the resources to physically host, support and maintain the server hardware. A shared environment won't offer you the same bandwidth or Web hosting space that a VPS will be able to support and there are also many more constraints on the software you can run in a shared hosting environment. In contrast, a VPS will give you the freedom to install, delete, reboot and do all the functions as if you have your own server. You also get an increased level of security as each VPS is isolated and completely separate from other Virtual Private Servers on the same physical server. The environment is secure and protected and each VPS can be rebooted or stopped independently – even if a hacker infiltrates one VPS there is no access to the others using the same physical server.
As a result of VPS hosting's hybrid nature, its cost isn't quite as low as shared hosts' fees, but it's not nearly as high as dedicated hosts' fees. You can expect to pay between $20 per month and $100 per month, depending on the configuration. Shared web hosting, on the other hand, is extremely cheap hosting; you can often set up shop for less than $10 per month. Dedicated web hosting will typically set you back $100 per month or more.

In terms of backups, databases and files, it all depends on the type of setup you choose. If you choose a server with a control panel it will make it effortless but if you want to do it manually, i suggest you take some time to learn how to do it properly, because, one error and you might loose everything you have worked for. My suggestion for a best server setup is a cloud managed cPanel VPS with SSD and good backup tool.
Should you need more speed and performance you can also consider switching to an ssd-powered VPS package which has the same advantages as a VPS but offers faster performance due to the presence of SSD hard drives. VPS SSD is highly recommended for websites that use a lot of disk caching, for example WordPress websites with the w3 Total Cache plugin
Not everybody is a server administrator, which is why our managed VPS servers and cPanel make server maintenance easier than ever. cPanel provides automatic updates for a myriad of deployable software, meaning you don't have to constantly monitor updates for your website(s). If you want to update your server software manually for integration and compatibility reasons, that capability is provided for you as well within the Server Configuration section of cPanel.
KVM virtualization gives customers more possibilities of management and server configuration. As it is a kernel based VPS hosting, kernels can be upgraded and modified by installing kernel modules. KVM has its own virtualized hardware, and the virtual server acts as a physical server. There is a possibility to set up a container-based system, such a Docker or Kubernetes to create OS level based containers on the KVM server.
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Similarly, in the case of VPS, there are several users that are using the same server but they are isolated from each other. It means that no one will be affected by how much resources another is using. You will get the speed and security that you need without compromise. It is almost a perfect scenario because you will get the benefits of a private server with shared cost of services.

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If you host or manage a number of different sites, cPanel and WHM provide you with all of the tools you need to manage and resell your VPS Hosting resources. As a Reseller, you can create multiple cPanel accounts, allocate resources and bill your clients, all within WHM's powerful Reseller interface. This feature is an all-in-one tool for designers, developers and agencies that host multiple clients with one account.
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]
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