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1. Virtual Hosting Virtual hosting describes a remote web server which is "host" to numerous domain names, where each domain name owner has all of the features of having a dedicated (on site) server. Virtual hosting provides for most of the same features of a dedicated server but is located in a high speed dedicated data center costing millions of dollars. The cost to maintain a virtual server for each site owner is a fraction of the cost of a dedicated server, with most of the benefits.
2. vps Virtual Private Server. A virtual part of a server that runs it's own operating system so you have root access and can do anything you can do with a dedicated server, except that the physical resources are shared between multiple virtual private servers.
 
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