Private hosting is a method of specifying which part of virtual space of a certain server is used for a certain purpose or specific client. This occurs when a dedicated server is capable of hosting multiple clients and users. Partitioning the physical server into a number of various servers makes private hosting possible. Each private hosting server functions just like a dedicated server, only for a lot less money and operating costs. Virtual private hosting allows clients the chance to have their own dedicated space in the virtual world.
In virtual private hosting, clients can have their own websites, databases and other applications located on their own virtual server. For example, a large company with multiple locations or dealerships could have their own personal websites operating off the company virtual private hosting server except with names and IP addresses pointing to their dealership but utilizing company applications to do business. In the virtual world only one private hosting server is needed to do the business of all of the dealerships from one central location. This cost cutting raises the profit margin for all involved.
Private hosting servers require maintenance, however, not as much as dedicated servers. Security is better than on a shared system also. Private hosting is more reliable, and more controllable for the company system admin. All of this is made possible because each partition operates on its own operating system within its private hosting virtual system. Each private hosting server can also reboot without affecting other users on the other side of the partitions. Unlike VPS in a dedicated hosting, the client leases the entire physical server and does not share with anyone.
To put it another way private hosting server let you the site owner deploy whatever software you want or need to continue to grow your web based business, something not possible in a shared hosting situation. VPS and private hosting servers are what everyone user will be doing in coming years as the industry develops and grows.