A Virtual Private Server (VPS) is a virtualized server run specifically for you. Unlike web hosting (also called "shared hosting"), the data stored in this way is isolated in a virtual machine, available only to you. You can run your websites (corporate websites, e-commerce, content, media, etc.) and/or software applications on a VPS, including mainly web applications (portals, extranets, collaborative solutions, wikis, CRM systems, etc.), and benefit from freedom in configuration and firmly guaranteed performance (server performance).
This makes the VPS the ideal alternative between a web hosting and a physical server. It combines reliability and performance of a dedicated environment without you having to worry about managing physical hardware.