A VPS, or virtual private server, is a form of multi-tenant cloud hosting in which virtualized server resources are made available to an user over the internet by the hosting Provider
Each VPS is installed on a physical machine (HP/IBM/DELL/BYOD ), operated by the cloud or hosting provider, that runs multiple VPSs. But while the VPSs share a hypervisor and underlying hardware, each VPS runs its own operating system (OS) and applications and reserves its own portion of the machine's resources (memory, compute, etc.).
A VPS offers levels of performance, flexibility, and control somewhere between those offered by multi-tenant shared hosting and single-tenant dedicated hosting. While it might seem counterintuitive that the multi-tenant VPS arrangement would be called ‘private’—especially when single-tenant options are available—the term ‘VPS’ is most commonly used by traditional hosting providers to distinguish it from shared hosting, a hosting model where all the hardware and software resources of a physical machine are shared equally across multiple users.
At the other end of the continuum, SOLOIDC offer a level of hosting isolation (and privacy) beyond a multi-tenant cloud server. Two common models include dedicated hosts and dedicated instances. In both of these models, the end user is getting access to virtual resources, and is likely taking advantage of a managed hypervisor, but is doing so on dedicated, single-tenant hardware.