A VPS is a virtual private server. It is created by using virtualisation software that establishes a number of independent virtual servers on a single physical server. While this gives it similarities to shared hosting, VPS are, actually, far more like mini dedicated servers.
VPS hosting, therefore, is a hosting solution in which customers have their own virtual private server, independent operating system and allocated resources. You have the freedom to choose your own operating system and run the apps you want, while having all the resources you need (CPU, RAM, storage and bandwidth) to run them – far more resources than with a shared hosting account.
This makes VPS the perfect solution for those who have outgrown shared hosting but are not yet ready for a dedicated server. They are also significantly less expensive than a dedicated server.