Virtual private server (VPS) is a marketing term used by Internet hosting services to refer to a virtual machine for use exclusively by an individual customer of the service. The term is used to emphasize that the virtual machine, although running in software on the same physical computer as other customers' virtual machines, is functionally equivalent to a separate physical computer, is dedicated to the individual customer's needs, has the privacy of a separate physical computer, and can be configured to run as a server computer (i.e. to run server software). The term Virtual Dedicated Server or VDS is used less often for the same concept.
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