Originally Posted by Collabora
there are also VDS's that are not like standard VPS.
The difference between a VPS and VDS is simple. A VDS instance takes up the entire server whereas a VPS is a server configured to host multiple server instances. The distinction between VPS and VDS lies in the fact a VDS gets dedicated server underneath the layer of virtualization while a VPS shares the underlying server with other virtual private servers created on the same node.
I am not sure on how the confusion began BUT what you describing is technically a "Smart Server". Where a single VM sits in an actual machine and sucks up all the resources within.
A VDS on the other hand is where you get actual "cuts" of the server. For example instead of most VPS providers BS "vCores" you get actual CPU allocations. Meaning a VDS that have 2 CPU cores will means you will be able to max out both CPU cores 24/7 assuming it's a genuine VDS.
VDSes are generally popular for gamers as they literally the next best thing to a dedicated server. However they are quite hard to come by at decent pricing for RAM and some time SSDs. Which is why some just skip it and just get a dedicated unit.