A virtual private server provides an operating system, storage, memory, processing and network access in a remotely hosted environment. It can keep an automated service running when the owner's local computer is turned off.
The customer normally manages software updates, access controls, credentials and monitoring inside the server. A VPS offers useful separation from other tenants, but its applications still need secure configuration and recovery planning.
ELI5
A virtual private server, or VPS, is a rented computer that runs in a data center. A user controls it over the internet, and programs can continue working there all day and night.
For example, a trading agent can run on a VPS for a month without depending on a laptop staying open. The owner must still protect login keys, install security updates and monitor whether the program is behaving correctly.
