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Virtual Servers are emulations of full operating systems with privacy against other customers use or acces on the same physical machine. A single physical server can run numerous virtual servers, allowing customers control over their environment and user-grade security above 'shared hosting' solutions.
Virtual servers due incur overhead and are not as efficient as dedicated servers on the same hardware, and share physical resources (bandwidth per port, cpu access, RAM) with other virtual servers through a variety of optimizations that result in lower performance than operating systems running on 'bare metal' (non-virtualized).
Virtual Servers are a cost effective alternative to renting a dedicated server, and suited for web servers, email servers, and messaging applications that do not require RAM access or cpu high availability for real-time positioning. Many retro games for multi-user operate well on virtual servers, due to very low resource requirements.
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