Despite the fact that multiple customers are sharing one physical server, each customer VPS simulate its own dedicated hosting environment and computing resources. This is achieved using a virtualization software known as a hypervisor, a virtual layer installed on top of the operating system (OS) which divides the physical server resources (storage, RAM, CPUs) into virtual slots that are allocated for each VPS as desired. The hypervisor enables each of these slots to run its own OS and software applications, use its own IP address(es), isolating each VPS environment and allowing it to function independently from one another.