You may have heard about Virtual Private Servers (VPS), since the introduction of the VPS in 2001, more people are adopting the solution as the primary way they store and manage data. If you are not aware of it, just look at the below Infographic from Blue Host which shares the basic information about VPS.
Also I would suggest you to read Virtualization and Cloud Computing? Two Different Concepts
source: - https://www.bluehost.com/blog/educational/infographic-a-beginners-look-at-virtual-private-servers-2474