"A virtual private server (VPS, also referred to as Virtual Dedicated Server or VDS) is a method of partitioning a physical server computer into multiple servers such that each has the appearance and capabilities of running on its own dedicated machine. Each virtual server can run its own full-fledged operating system, and each server can be independently rebooted." (Wikipedia)
The main benefits of having your own VPS are based around cost-effectiveness (much cheaper than standard dedicated servers), and control (you have complete control over your VPS).
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