VPS hosting is a Virtual Private Server, and is a virtualized server. A VPS hosting environment mimics a dedicated server within a shared hosting environment. It is technically both shared hosting and dedicated hosting. Virtual Private Server hosting plans offer virtual machines to clients. The concept of virtualization is similar to shared hosting where one server computer can have multiple sites running on it. However, virtualization technology allows each account to be treated as its own machine with its own dedicated resources and operating system. Also the cost of a VPS is lower but the performance is equivalent to a dedicated server.