So, first off, what is a Virtual Private Server? A VPS is a hosting account which is hosted on a machine with other accounts, yet it acts as if it were a stand-alone server. In theory, the actions on your VPS account would not affect the other accounts on the host server, and theirs would not affect yours. With a VPS, you will have an individual copy of the operating system, or you could even have a separate operating system for your account.
To put that in perspective, it is a median between Dedicated Hosting and Shared Hosting. Shared Hosting is where you have multiple accounts on the same machine with the same copy of the operating system, and Dedicated Hosting is where you have an entirely separate server for each account.
VPS allows you to have most of the benefits from Dedicated Hosting, but there is a considerable reduction of costs.
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