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A Virtual Private Server is a machine which is sold as a service by an Internet hosting service. A Virtual Private server mainly functions on its own copy of an operating system, and the customers have super user-level access for example, the customers can download and install any software which runs on that OS. For many of the purposes VPS servers are functionally similar to a dedicated physical server, and since they are software defined, they can be created and configured more easily and quickly. Generally, the prices of the VPS are much lower in comparison to similar physical servers but their performance may be less because they share the underlying physical hardware.

In case of dedicated hosting, every server caters to the needs of only one customer. The uses of VPS are complete control over the OS, applications and also the option to accommodate high levels of traffic, but it tends to get expensive and thus many businesses may not need the capacity and resources given by dedicated hosting. Therefore a common alternate option is shared hosting, wherein a single server is managed by a web hosting company and many customers share the resources of the server. Shared hosting becomes much cheaper since the costs of managing the server will be shared between all the clients, but it has constraints on capacity and limits on the types of applications that could be used.

VPS Hosting or Virtual Private Hosting works in the same manner like partitioning a hard drive on a PC. Upon partition, one can run the different operating systems on every partition, in the same fashion, each partition of server will also act as complete separate server and thus it earns the name of Virtual Private Server. Each Virtual Private server will have its own OS and would be completely separate from other virtual servers on the same physical server by use of a piece of software known as a hypervisor.

With shared hosting people usually suffer from problems which are caused by the other sites hosted on the same server like spikes in traffic, security mistakes or loopholes in their scripts, all of which can lead to a reduction in the accessibility of their site and interference in business. These problems are easily removed with Virtual Private Hosting as all aspects of other websites are limited within their own VPS and cannot affect others.

Virtual Private Hosting offers greater flexibility than shared hosting, which has constrained scope for customization, but needs less technical knowledge in comparison to dedicated hosting. In addition to all these, it also offers the reliability and increased performance which is generally associated with dedicated hosting but at costs much lower than dedicated hosting. With its separate partition and its own operating system it is prepared to suit the requirements of your business. With its own dedicated mail server and resources similar to individual system, Virtual Private Hosting gives you almost the same amount of control as dedicated hosting will give on a smaller scale, thus making it a more efficient on the basis of cost.