What’s a VDS
A virtual dedicated server (VDS) is a virtualized server that appears to you as a dedicated server but is actually installed on a hardware host serving multiple customers. A single hardware server can have several VDSs, each one with its own operating system (OS) that runs the hosting software for a particular customer. The hosting software for each VPS can include a Web server program, a File Transfer Protocol (FTP) program, a mail server program and specialized applications for activities such as e-commerce and blogging.
A VDS is created by virtualization software which partitions a single physical host server to form multiple servers within it. Each virtual server is completely independent of its neighbors and functions like an actual networked server.