A virtual server is a complete server running inside a larger physical machine. It has its own CPU, its own memory, its own disk and its own operating system, and you manage it with full control, just like a computer of your own. The difference is that it does not take up a whole chassis in a datacenter: it shares the physical hardware with other virtual servers, each isolated from the rest.
You may also know it as: VPS (Virtual Private Server), virtual private server, VDS or cloud server. In practice they all mean the same thing; for the full comparison with shared hosting and dedicated servers, see our guide on what a VPS is.
How it works: virtualization
In the datacenter there is a powerful physical server (dozens of cores, hundreds of GB of RAM, NVMe disks). On top of it runs a hypervisor (at GINERNET we use KVM, the Linux kernel standard) which splits that hardware into several isolated virtual servers.
Each virtual server boots its own operating system from scratch: you can install Ubuntu, Debian, AlmaLinux or Windows, reboot it whenever you want and log in as root (or administrator) over SSH or remote desktop. The resources you buy (vCores, RAM, disk) are yours: your neighbour on the physical machine cannot consume them.
Virtual server vs physical (dedicated) server
| Virtual server | Dedicated server | |
|---|---|---|
| Hardware | A guaranteed slice of a machine | The whole machine |
| Price | From a few euros per month | Tens or hundreds of euros per month |
| Delivery | Minutes | Hours or days |
| Upgrades | In minutes, no migration | Hardware change or migration |
A dedicated server makes sense when you need the full power of a physical machine for yourself. For almost everything else, a virtual server gives you the same control for a fraction of the price, and if you outgrow it you can add CPU, RAM or disk in minutes.
Virtual server vs shared hosting
With shared hosting you do not manage the server: the provider gives you a panel (cPanel) and you upload your website. It is the convenient option for a simple site. With a virtual server the operating system is yours: you install whatever you want, serve whatever you want and tune the server to your needs. In exchange, the administration is on you (or on the provider, if you choose a managed VPS).
What a virtual server is used for
- Websites and online stores that have outgrown shared hosting.
- Your own applications and APIs: Node.js, Python, PHP, Docker containers…
- Automations and AI agents: tools like n8n running 24/7.
- A private VPN, DNS, mail or self-hosted storage.
- Game servers, such as a Minecraft server.
- A Windows remote desktop reachable from anywhere.
How to choose a virtual server
Start small. With GINERNET's hourly billing you can create a minimal server, measure its real usage and add CPU, RAM or disk only when you actually need it.
Look at four things: guaranteed resources (KVM, not oversold containers), an NVMe disk, a location close to your users (a datacenter in Spain gives 1-20 ms latency to any Spanish ISP) and the ability to upgrade without migrating.
At GINERNET, virtual servers are KVM VPS in Madrid with NVMe, a dedicated IPv4 and hourly billing: you only pay for the hours the server exists, with no lock-in.