About Virtual Private Server
The full form of VPS is Virtual Private server and it is also known as Virtual Personal Server. There are so many physical servers in any data centers that when virtual resources of a physical server (memory, storage, CPU etc) are created by virtually dividing the machine with the help of software, this process is called virtualization.
VPS virtual machineTo create VPS virtual machines are created on the physical server with the help of virtualization software (such as Hyper-V, Vmware etc). This machine, hosted on the physical server, is called virtual machine. This virtual machine uses the resources of the physical server.
Hosting CompaniesA lot of VM can be created according to its hardware resources on any physical server. Any OS can be installed on virtual machine. When a customer takes VPS service, hosing companies give one of VM's hosted VMs to the physical server and the customer uses the operating system, disk space, and bandwidth required on this virtual private server.
Basically, using a concept of virtualization on a Physical server, many customized virtual machines are created, which are called VPS. Whenever anyone is given access to VPS, then only he can see that VPS machine and not the entire physical server.