VPS is short for virtual private server. It's a virtual machine sold as a service by internet hosting service. It runs on its own copy of operating system. Customers have super user-level access to that operating system instance. For that so they can install almost any software that runs on that operating system. They are functionally equivalent to a dedicated physical server for many reasons such as being software-defined, easy creation and configuration. They are low in price. But the catch is, performance may be lower as they share the underlying physical hardware with other virtual private servers. It may depend on the workload of other instances on the same hardware node.