Virtual Private Server
Sometimes referred to as VPS, a virtual private server is a VR sold as a service by an internet hosting service.
A VPS runs its own copy of an operating system giving customers a superuser-level of access to the operating system instance so they can install nearly any software that runs on that particular OS.
To the client they are functionally equivalent to a dedicated physical server in many instances. In addition, being software defined VPSs are able to be much more easily configured and created.
VPSs are also more cost effective for clients since they are priced much lower than an equivalent physical server.
The downfall, though, is because the VPSs share physical hardware with other VPSs the performance may be less than if a client was to use a physical server.