A virtual server is a fully operational server with one difference. A virtual server is housed on a single physical server along with 1 or more other virtual servers. Virtual servers share resources amongst each other through one physical server known as the “host”. A virtual server and all its data / processes are completed isolated from other virtual servers and its host. So in a logical sense there is absolutely no difference between a virtual server and normal traditional server. Virtual servers are very portable and maximize utilization of your physical servers resources.
A physical server refers more to a single operating system / single host type scenario. This means that one server operating system is installed directly onto the physical host which has complete exclusive access to the physical servers resources. With physical servers, there is no ability to install more servers “side by side” within the same physical server. You will find with physical servers, they tend to be poorly utilized by the single operating system installed on it.
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