VPS, Virtual Dedicated Server or (VDS) is an intermediate link between shared and dedicated web hosting services. Businesses which opt for virtual private servers get the freedom of using VPS services individually at lesser costs than of a physical dedicated server. VPS is a pay-as-you-go model.

It is a method of splitting a server virtually using Hypervisor. Hypervisor is a software tool used to create, manage or destroy the Virtual Private Server resources on each machine.  A VPS runs its own OS which provides a super-user access to an individual. A user can install any application, any OS or software on the virtual machine.

Every Virtual Private Server is capable to run a full fledged OS and can be rebooted independently despite running on the software installed on the same physical computer and shared by the virtual machines of other customers. Every virtual machine is equivalent to a physical computer in terms of function. It works as a dedicated physical machine and can be run as server software. A virtual machine has the privacy of using a separate physical computer.   

Basically, most of the features of VPS hosting service can be attributed to shared and dedicated hosting services, though it is the cheapest option available for web hosting.

Virtualization of servers helps in server consolidation and leads to the pooling of common infrastructure resulting in cost optimization. The costs of datacenters are also cut down by reducing physical infrastructure and improving server to admin ratio. Virtualization reduces the numbers of servers to be used and need of IT hardware as well. There are fewer requirements of real estate, power and HVAC equipments.

When a company deploys VPS, the maintenance and management of the services is performed by the service provider. They enforce corporate security policy at the application level. Hypervisor level firewall is deployed as well. Logging and auditing of the virtual environment is also done by the provider along with traffic monitoring.

The virtualization of datacenter minimizes both planned and unplanned downtime. Even during the scheduled downtimes, the continuation of services is maintained. The virtualization platform of VPS ensures high availability and minimal downtime.

The virtualization of datacenters makes way for dynamic virtual infrastructures assuring accelerated delivery of IT objectives, improved operations and compliance to industry standards. The virtualization platform also provides scalability to virtual private servers.  Even when users upgrade their network resources, there is no downtime.  Storage upgrades can be done without any downtime as well.