A Virtual Private Server, or VPS, takes advantage of one of the latest advances in information technology: virtualization. Whereas a shared offshore server is a single machine hosting different clients, a VPS shares IT infrastructure but is not limited to a single machine.
The virtual part of VPS comes into play because each server acts as a completely separate and unique component. Physically speaking, a single machine could be running a number of virtual servers. While it sounds complicated, in the end, a VPS acts like a dedicated server without having to tie up a single machine.
VPS services are a hybrid between shared and dedicated configurations. Since a VPS is virtual, the resources required to run such an offshore server can be utilized from any number of machines. For example, a VPS requires computer memory and processor power but it does not matter from which server it comes from. So a VPS is not physically dependant on a single machine. This type of offshore hosting is very economical and reliable since any single piece of hardware can crash, but the VPS can still run from any other free resources within the hosting facility.
Technical issues aside, a VPS is an alternative option that combines the benefits of both a shared and dedicated server. Clients see lower prices due to the flexible and distributive nature of how a VPS uses computing power. In addition, each VPS is a completely separate entity allowing for the full range of customization and choice in applications that a dedicated server offers.
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