VPS hosting provides you with a virtual server that simulates a physical server, however, in reality, the space is shared among several users. Using virtualization technology, your hosting service installs a virtual layer on top of the operating system of the server. This layer creates the partitions and allows each user to install their OS and software. Therefore, a virtual private server (VPS) is both virtual and private because you have complete control. With VPS hosting, you have the same root-level access as if you had a dedicated server, but at a much lower cost.