A type of hosting service where the customer rents a virtual dedicated server or virtual private server (with the two terms having a similar meaning), deployed on hardware that is managed by a hosting provider. A virtual server is a virtual machine deployed on a physical server. The VM has server software installed that emulates the operation and resources of a separate physical server. Usually, a virtual dedicated server costs less than a conventional physical dedicated server. In addition, a VDS can be easily scaled whenever necessary.