Virtual private server is physical servers can be partitioned into multiple ‘virtual’ servers where each virtual server looks and acts like an individual dedicated server.
In short, you can imagine a cake. This cake is divided into 8 pieces; so these 8 people get their own slice of cake without sharing.

Each user get their own resources when they subscribe to VPS and they can install their own applications and have access to root account.

You can take advantage of the numerous benefits of VPS:

Increased Security
Improved reliability
Ease of use
Lower total cost of ownership

The one benefit, however, that really stands out for Virtual Private Servers is ‘flexibility’. Given that VPS’s have their own
operating environments, you can install you own operating system / version, you can add and remove software applications at will and you can modify you environment for optimum performance. A VPS allows you to customize your users’ experience which, in turn, can be used as a competitive advantage.

As business, web traffic, increases, overall performance and throughput can be compromised. Any business owner who anticipates growth should consider a VPS. Any business owner who needs specific / custom applications installed on their server, but is not able or willing to fund the purchase and maintenance of a dedicated should consider a VPS.

A Virtual Private Server is a partition on a physical server. The physical server can be divided into numerous virtual partitions which, in turn, will distribute the cost and overhead between the virtual servers.

A quick easy overview:
VPS – Slice of cake for 1 user
Dedicated server – Entire cake for 1 user

Because the cost of the physical server is essentially shared between the VPS’s, the servers that are typically used in a VPS environment have greater performance capabilities and greater capacity than dedicated servers. For most small business owners the cost of a comparable, dedicated, server is cost-prohibitive.

Yes, when operating in a shared hosted environment, even with all the appropriate security measures, breaches in security can occur. The level of security increases significantly when you upgrade to VPS’s. Each VPS is isolated via virtualization software which keeps all data, applications and processes safe and secure in its own virtual environment.