A Virtual Private Server (VPS) is a type of hosting service that allows users to have their own dedicated portion of a physical server. It uses virtualization technology to divide a single server into multiple virtual servers, each with its own operating system and resources. This setup provides more control and flexibility compared to shared hosting, where multiple users share the same server resources. VPS hosting is ideal for businesses or individuals who need more power and customization than shared hosting can offer, but do not require the full resources of a dedicated server. It is commonly used for websites, applications, and databases that need reliable performance and security.