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Since the physical server is divided into several virtual servers, this allows the provider to diffuse the cost and overhead expenses between the users of the virtual partitions. This is why a Linux VPS is comparatively much more affordable than a dedicated server, which, as its name implies, is dedicated to only one user. For a more detailed overview of the differences, check our Physical Server (dedicated) vs Virtual Server (VPS) comparison.
Aside from being more cost-efficient than dedicated servers, Linux virtual private servers often run on host computers that are even more powerful than dedicated servers—performance and capacity are often much more capable in order to handle running many servers at the same time.
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