A virtual private server (VPS) separates you from other customers on a physical web server, running on a copy of its own operating system, but it shares CPU and RAM resources of the physical web server with other VPSs running on that server.
In a VPS, a single physical server is partitioned so that it appears as multiple servers. The physical server boots normally, then runs a program to boot each VPS within a virtualization environment.
Simple VPS explanation
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