By using specially designed software, an administrator can convert one physical server into multiple virtual machines. Each virtual server acts like a unique physical device, capable of running its own operating system (OS). In theory, you could create enough virtual servers to use all of a machine's processing power, though in practice that's not always the best idea.
A VPS runs its own copy of an operating system, and customers have superuser-level access to that operating system instance. Therefore, you can install almost any software that runs on that OS.
A Virtual Private Server is created by partitioning the physical server into multiple servers, made possible by the technology of Server Virtualization. The term Virtual Server is widely used by Internet hosting services and it is often used to refer to a Virtual Machine. A Virtual Private Server VPS works in a federated environment used by other virtual machines. But in all aspects the functionality is equivalent to that of an environment created by a physical computer dedicated to individual customer needs. It offers the same privacy, which is seen in separate physical computer environment, configured to run server software. Virtual Private Servers are also known with the synonym of Virtual Dedicated Server or VDS.
or
