A VPS gives you your own private server that runs on a high-powered (4 to 8 CPU) high end server that also hosts other VPS accounts. Your access to system resources is guaranteed, and VPSs are completely independent of each other. Each has its own IP space, disk space and file structure, and no vserver is accessable from any other VPS. You log on to your VPS as if it was a completely stand-alone dedicated server; from an access and operability point of view, a VPS looks and works the same as a dedicated server.
Since each VPS has its own file structure, it is independent of the other vservers running on the same server, and VPS can be easly moved quickly from one server to another if the need arises, such as when a customer wants to switch to a fully dedicated server, or when server hardware is scheduled for replacement. VPSs can be moved from one physical host to another with zero downtime.
VPSs are less expensive than dedicated servers and offer a cost-effective option for customers whose needs require something bigger than a shared hosting account, but don't require a fully dedicated server.