Vps
 

What reason exactly would one require to set up a VPS?
Are VPS's only useful for large networks, or can we also use them at home?
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Honda CRF230M

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".

Most VPS servers are set up for profit. I don't not know of anyone that set up a VPS server for personal use. A VPS is use to divide a large server into smaller servers. Most VPS servers are dual processors with 8GB+ of ram. You couldn't probably get more than 4 VPS servers out of a normal server. Before performance took a dive.