Actually a VPS 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.
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.
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