VPS (Virtual private server) is a virtual computer that you can buy from a cloud provider. It can do almost anything a real computer can. A VPS slice is often a virtual machine (QEMU + KVM) given to you by a cloud privder, with GNU/Linux pre-installed.

The benefit of having a VPS is that cloud privders usually give you a static IP with it. Because it's a remote computer, a VPS is almost never turned off (i.e. it runs 24/7). This makes it suitable for hosting things like a website, game server, or just for storing your own files instead of using Google Drive.

The drawback of having a VPS is that it's a public computer. Anybody with internet has access to it, which means you also need to understand how to keep a VPS secure. In addtion, you need to know how to configure everything yourself. While cloud providers usually don't care what you do with the VPS, they don't like when people host things that damages their reputation or infrastructure.

A VPS is suitable if you want any of the following:

• Website (personal or business)
• Email server (personal or business)
• Game server for friends
• Cloud storage
• A GNU/Linux computer you have 24/7 access to

OVH Cloud is popular in Europe. Very cheap prices (especially during black friday), but the Web UI is bloated and difficult to use.

Vultr is popular in America, although somewhat more expensive than OVH.

Securing a VPS is your responsibility, not your cloud provider's responsibility.