Virtualization software enables splitting a server into multiple virtual machines. With a server running many virtual machines, every single one works more like a dedicated hosting server. With VPS hosting, you will neither have to share server resources with other website users nor rent a whole physical server for dedicated resources.
VPS hosting enables you to have your own OS, so other websites on the main physical server cannot access your files. You must choose the right virtual private server hosting package, but this is easier said than done. You have many options to pick from. On top of that, you have two types of VPS, which vary by the way servers are handled. For a better idea about this matter, take a look at the following infographic on the pros of managed and unmanaged VPS hosting.