Virtualization is a technology that allows you to create multiple simulated environments or dedicated resources from a single, physical hardware system. In computing, it is used to separate services and resources to improve efficiency, flexibility, and scalability.
Virtualization applies to a Virtual Private Server (VPS) in that a VPS is essentially a virtual machine sold as a service by an internet hosting provider. The VPS runs its own copy of an operating system, and customers may have superuser-level access to that operating system instance. Thus, they can install almost any software that runs on that OS.
In VPS, a physical server is partitioned into multiple virtual servers, each of which operates as an independent server environment. This is possible because of the virtualization technology, which permits the division of a physical server into several virtual ones that function independently, even though they share the same physical hardware. This virtualization ensures that the resources such as processing power, memory, and disc space are distributed equally and customers get dedicated resources despite sharing the same physical server.