There is a VPS forum below this one, perhaps admin can move this post there
Anyway, this is a general description of a VPS-
In computing, Virtual private servers are a means of splitting a single physical server into multiple virtual servers. Virtual private servers are sometimes called virtual dedicated servers. The practice of partitioning a single server so that it appeared as multiple servers was common practice in the days of mainframe computers, but has seen a resurgence lately with the development of software such as User-mode Linux and Xen.
And no, it can be used anywhere.. not just on big networks.
Its great for splitting your server up into several "virtual servers".