Perhaps the best way to approach the virtual server is the idea of a virtual machine. A VM allows you to run an emulation of a computer within your computer, drawing on the resources of the physical one –  disk space, RAM, CPU, etc. This tactic allows you to run an entirely separate operating system (OS) solely for the purposes of the VM, even if its type and version of OS are identical to what’s on your hardware.
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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.