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A virtual private server (VPS) is also referred to as a virtual dedicated server. Typically used by business web hosting companies, a virtual private server is installed on a computer that serves multiple websites behind the scenes but provides a seamless viewpoint of the websites being viewed. One computer used for business web site hosting can have several virtual private servers that each has their own operating system for running software for each website.
A business web hosting service uses specific hosting software for each virtual private server based on specific needs, such as e-commerce activities or for blogging. Usually, a virtual private server will have a web server program, a file transfer protocol (FTP) program, and a mail server program since this software is used by all business websites. A virtual private server is ideal for a business that cannot afford to have a dedicated server for a customized web site.