KVM (Kernel Virtualized Machine) is another method of virtualization in which the VPS operates its own server on the host node. KVM provides full kernel virtualization where the user has total control over every aspect of the server. In comparison to a virtualization such as 'OpenVZ' -- where only a shared kernel is used. KVM offers more features for the user who isn't quite ready to step to a dedicated server but still wants to run applications such as Docker.
KVM is recommended for those who want full control similar to a dedicated server.