I would not really say it is vital. It is just that you can have many people on the same server but they can each change settings and everything because to them it looks like they are on there own dedicated server but it is really only 1 physical server. Lets say the physical server has 2GB of Ram and has 4 VPS. Then each person may be given 512MB or RAM alloted to them or it may be setup so one person gets more and others get less. Does this make more sense? If not let us know and someone will try to explain it in a different way.
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