A virtual server is a dedicated web hosting system created by partitioning a physical server so that multiple users can access it at the same time. From the perspective of a VPN user, a virtual server has a different IP address compared to its actual physical location. Sometimes, it is difficult to physically place a server in certain locations like China, so the VPN provider places the servers in a suitable physical location (say Singapore) from where they assign virtual IP addresses.
When comparing virtual servers with a physical server, a virtual server is more effective in terms of performance. On top of that, it can prove to be less costly, which makes it cheaper compared to a physical server.
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