A VPS is not a physical stand-alone server but a part of a big hosting system. There are several VPS on a single physical server with its own CPU, own HDD, own RAM (and so on). Each VPS has its own IP und protected hosting environment.
The big advantage are the low costs for you as a costumer. In contrast to a managed root server you only have to pay for the ressources that you are using. You're only paying for the small part of a bigger hosting system that is exclusively controlled by you.
Virtual servers are target to customers that need or want full SSH access, install their own software on Linux servers or are looking for a low priced online hosting solution. If you only want to "test" if you can manage to run your own Linux server online or just want to spend a low budget for your own web or game server then our gamed! VPS products are the perfect solution for you!
If you want to install software on your own then you need to have some basic Linux knowledge.
Otherwise we can recommend our gamed! Webinterface which allows you to auto install several game servers with just 2 clicks.