A Virtual Dedicated Server is a 'server within a server' and allows you to have your own isolated memory space, HDD capacity and CPU resource which enables you to run multiple operating system and applications within a physical server. Consider it to be your own apartment within a building. Every apartment owner has their own living space and other areas which they could use as per their needs but they also share a common entrance to the building with the rest of the apartment owners, a common electrical and waste disposal system, electronic surveillance and other such features which reduce the cost of the apartment per individual.

A Virtual Dedicated Server similarly also allows you to enjoy the benefits of having your own dedicated server without the associated overheads of a dedicated server. The advantages of a virtual dedicated server or a VPS are significant, especially in the current economic scenario where every organisation is focused on reducing their overheads while trying to improve their overall service and offerings. Following are the key advantages of a virtual private server in comparison with a shared or dedicated server hosting environment: