I know that VPN is a Virtual Private Network. I'm using it to. It let you to surf anonymously by having a another IP.
But i was wondering what a VPS does? The only thing i know that it is a Virtual Private Server.

Virtual private server (VPS) is a term used by Internet hosting services to refer to a virtual machine. The term is used for emphasizing that the virtual machine, although running in software on the same physical computer as other customers' virtual machines, is functionally equivalent to a separate physical computer, is dedicated to the individual customer's needs, has the privacy of a separate physical computer, and can be configured to run as a server computer (i.e. to run server software). The term Virtual Dedicated Server or VDS is used less often for the same concept, however it may indicate that the server does not use burst/shared ram through multiple machines, as well as individual CPU cores.

Thanks for sharing this nice info with us.
hoping more from u.

VPS or Virtual Private Server is part of main node with own resources like RAM, CPU, HDD etc. This is very good solution if you need full access to server because you will get Administrator access and you will be able to setup things you need on your server if you know how to do that. Also you have managed VPS services where companys do everything for you. read Why VPS Is The Best Hosting Solution in ezinearticles Why VPS Is The Best Hosting Solution

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vps means hdd small part as per your need u can use it your own way.for that u have o pay to service provider.

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VPS is a virtually created environment in a dedicated server. This virtual environment can be setup using Xen, OpenV etc.