Using a technology called Virtualization, isolated virtual machines are created. These come with dedicated resources and full root access which gives you all the features and functions of a dedicated server at no additional cost. This is termed as Virtual Private Server (VPS) Hosting.
The three main advantages that come with VPS Hosting are:
Complete Isolation: Your VPS package and its applications remain unaffected irrespective of what another users does on the server
Root Access: This allows you to install any compatible application of your choice
Guaranteed Resources: Irrespective of any situation, the CPU, RAM, HDD and bandwidth that have been allocated to your package will always be available for your applications.