A virtual private server (VPS) is a physical server that has been divided (using software) into several virtual machines, each acting as an independent dedicated server. The physical resources such as RAM, CPU and disk space are still shared, but each VPS acts independently of the others. Each VPS can have a different operating system and can be configured in any way possible.

The key advantage of VPS is allowing each VPS administrator access to the root level of his virtual server. This kind of access allows the administrator to install and delete software, set permissions, create accounts – in short, do everything that the administrator of a 'real' sever can.