A virtual private server (VPS) is a virtual machine provided by an Internet hosting service. A VPS, although running in software on the same physical computer as other customers' virtual machines, is in many respects functionally equivalent to a separate physical computer, is dedicated to the individual customer's needs, has the privacy of a separate physical computer, and can be configured to run server software.
Virtualization extends this basic concept to the computer as a whole. In the traditional model, the operating system shares access to the resources, but there is still a single machine being shared. In the virtual server model, the virtualization software instead provides the illusion of more than one computer, hard drive, printer, etc. Although the resources are still shared, as under the time-sharing model, virtualization provides a higher level of security as the individual virtual servers are isolated from each other. Each virtual server can run its own full-fledged operating system and can be independently rebooted. This is valuable as it allowed businesses to run their legacy applications on older versions of an operating system on the same server as newer applications.
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