A virtual private server is not really anything new. But the name is relatively new. The concept, however, has been around since the early days of computing.

VPS – virtual private server – is a computer that is set up and partitioned so that it contains more than one operating system and server on one mainframe. Large businesses have been splitting their mainframes for decades, running separate operating systems and applications on the different parts of the computers for greater efficiency and management. But the Internet has allowed VPS to be offered as a service and because of the advent of cloud hosting, that’s precisely what is going on.

Through the Internet, a company can lease its own virtual private server and use it for whatever it wants. It is just like having a dedicated server except that the “dedicated” server sits on the same hardware as other “dedicated servers.”

By leasing a virtual private server, a company can have the same benefits as a dedicated server at a lower cost.