A virtual private server is a single physical server, split up between a limited number of users. It is a similar hosting set-up to a shared server, where many user accounts are located on the same server. The main difference between these two server setups is that VPS accounts have fewer users per box, and the users get more control over their section of the server. Virtualization software divides the users from each other, although you’re not entirely isolated from being affected by other people on your server. A private cloud uses distributed resources across multiple physical servers. The redundancy allows for a seamless transition to the other servers in a network in the event of a hardware failure or other issue. It’s similar to a RAID 5 hard drive setup. You see the resource as one server, but multiple systems are behind it.