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A virtual private server (VPS) is a virtual server that the user perceives as a dedicated/private server even though it is installed on a physical computer running multiple operating systems. A virtual private server is also known as virtual dedicated server (VDS).
A dedicated server is a single computer in a network reserved for serving the needs of the network. For example, some networks require that one computer be set aside to manage communications between all the other computers. A dedicated server could also be a computer that manages printer resources.