Next, we want to understand what a virtual private server is and how it works. The VPS is a private, dedicated hosting environment that is on a host, parent server, or a cluster of servers through the use of virtualization. We implement a hypervisor or virtual machine manager (computer software, firmware, or hardware that creates and runs virtual machines) to run virtual machines on a host/parent server. Each virtual machine is called a guest instance or child instance, relating a guest to a host and a child to a parent.
The value proposition for bare metal technologies is in the historical evidence that suggests most server workloads take advantage of a fraction of the actual physical resources over an extended period.  By combining workloads on a single hardware platform, one can optimize the capitalized expenditure of that hardware platform. This is the model cloud service providers use to create cheaper computing resources on their platform.

Rather than being hosted on one single instances of a physical server, hosting is delivered on a virtual partition which draws its resource, such as disk space, from an extensive network of underlying physical servers. If one server goes offline it will have no effect on availability, as the virtual servers will continue to pull resource from the remaining network of servers.