What It Is
A virtual private server, or VPS, uses software to split one physical server into several separate virtual servers. Each one acts like its own computer, with its own operating system and a set amount of processing power and memory. If shared hosting is an apartment building, a VPS is a townhouse: you still share the land, but you have your own walls, your own front door and your own utilities.
Why It Matters for Your Business
A VPS gives steadier performance than shared hosting, because other customers cannot use up your reserved resources. It suits businesses that have outgrown shared hosting, run several websites, or need custom software. An online store that slows to a crawl during holiday sales often runs smoothly after moving to a VPS.
Good to Know
A VPS comes in two flavors: managed, where the host handles setup, security and updates, and unmanaged, where you or your developer handle everything, often with root access. An unmanaged VPS is cheaper but means you are responsible for keeping the server secure. Most small business owners without an IT person are better served by a managed plan.