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A virtual private server (VPS) is a dedicated server hosted on a shared machine. It is a low cost way of getting most of the advantages of having a dedicated server (root access, customizable setup and installation of your own software), as well as the advantages of shared hosting (managed and software updates with technical support).
Virtual private servers fill the gap between shared web hosting and dedicated hosting.
Note: some web hosts refer to virtual private servers as virtual dedicated servers.
Unlike a shared hosting server, a virtual private server runs on its own server operating system software. This runs inside an separate file directory which allows a (VPS) to be completely isolated from the actions of the other users.