In general, the entire setup is dependent on a single core computer that might be a server machine or super computer. Several ordinary computers might be able to do this job but when you need to split them into many parts they won't be capable of doing as swiftly as needed. However, it also depends upon you that what level of server utilization you require.
Technologies have introduced plenty of software able to split the hardware architecture into many entities. So that a server having a few gigs of memory and processing power may divide into different VPSs sharing these resources equally.
After the introduction of virtual private servers specific web hosting came into existence. Companies started adopting this method of shared web hosting to increase their popularity among the customers. This method allowed them to put aside their resources to expand the server quota. It is not a form of free web hosting or cheap web hosting at all but could be named as a business web hosting. Every customer gets the desired web space and bandwidth.
For average business owners this type of web hosting cuts the cost and ensures the availability of all the necessary resources. One who is looking for the VPS hosting must know about all the advantages and disadvantages of this type of hosting. Though it can not handle huge loads but works fine with normal websites. Different web hosting reviews are presented by the experienced webmasters in order to help out the new customers. There should be some research work in finding out a proper virtual private server hosting service.