A virtual private server (VPS) allows multiple users to have their own virtual machine on one physical server but share it resource including memory, storage, processor and power.
Customers can benefit from having full access to their virtual server to modify the configuration or install custom software without the expense of dedicated hardware. This cannot be done with shared web hosting.
Each virtual server also has its own dedicated IP address, bandwidth and processing power from the server. This also allows you to host multiple domains on a single server.