Virtual private server (VPS) is a term used by internet hosting service

Internet hosting service

An Internet hosting service is a service that runs Internet servers, allowing organizations and individuals to serve content to the Internet. There are various levels of service and various kinds of services offered....

s to refer to a virtual machine

Virtual machine

A virtual machine is a "completely isolated guest operating system installation within a normal host operating system". Modern virtual machines are implemented with either software emulation or hardware virtualization or both together.-VM Definitions:A virtual machine is a software...

. The term is used for emphasizing 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

Server (computing)

In the context of client-server architecture, a server is a computer program running to serve the requests of other programs, the "clients". Thus, the "server" performs some computational task on behalf of "clients"...

 computer (i.e.