Let’s first focus on server. In layman’s terms, a server is a powerful computer that stores all of the data and files that make up your website. When someone types your domain name into their web browser, that powerful computer “serves up” your website to the searcher’s screen.

Now for the virtual aspect: VPS uses virtualization technology to split that one powerful server we just talked about into multiple virtual servers. Think of it this way: it’s one piece of physical hardware that functions like several separate servers.

The word private means just what it implies. Your virtual server is reserved for you, so you won’t have to share RAM, CPU, or any data with other users.

How VPS Stacks Up Against Other Common Hosting Plans
To truly understand how VPS works, it’s important to get familiar with some of the basics of web hosting, including other common plans. Here’s a brief breakdown of the differences between shared, dedicated, and VPS hosting.

1. Shared Hosting
Shared hosting is the most common form of web hosting and works well for many new website owners. When you purchase a shared hosting account, you’re sharing key resources like CPU, RAM, and hard drive space with all of the other website owners using that shared server.

Let’s use an analogy to make understanding this concept a little easier.

Think of a shared server as a large apartment complex, and all of the individual apartments are rented by other website owners. All of you need a place to live — just like your website’s files — but going out to buy a huge family home would be too expensive for your needs. Sharing common areas and utilities in an apartment block helps keep costs down. And the same is true for shared hosting.

Another shared plus: your panel will be fairly easy to navigate since most web hosts pre-configure and maintain the server for their shared customers.

There are a few downsides to shared hosting, though, mostly because you’re sharing. For instance, if someone else on your shared server has a huge spike in traffic, that could affect your website’s performance. However, if you’re just getting your website off the ground and don’t have huge traffic volume, shared hosting is a great way to get online!