VPS (Virtual Private Server) What is a Virtual Private Server (VPS)? A Virtual Private Server (VPS) is a virtual machine hosted on a physical server, providing dedicated resources for hosting websites, applications, and other services. Explanation VPS hosting offers more control, performance, and security than shared hosting, making it a popular choice for growing businesses and developers. Practical Example of a VPS A small business uses a VPS to host its e-commerce site, ensuring better performance and security compared to shared hosting.