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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.
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I don't think it could have been explained better. With a VPS, you have many advantages over a normal reseller account on a shared server. With your own VPS you won't have to worry about other customers on the server bringing it down for one reason or another.
Also with your VPS, you are given root access over it and you have free reign over which OS and software you have installed, whereas a shared server software/OS is chosen by the Administrators/Management.