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sg2009

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VPS v/s Dedicated Server

I have seen companies are selling VPS at a very cheap price compared to dedicated server. As per my knowledge, VMWare is mainly used to create virtual machines and each machine requires Windows Server License. How the companies are offering VPS at such a low price? is there any catch? if both have the same performance then why would I pay more money for dedicated server? Do you guys know how this Virtual private Server is created?
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Very generically, you can fit many VMs on any given hardware server.  Thus, price is naturally lower with less overhead.  Also, direct hardware access will equate to faster performance. Lets' say you are running many VMs on one server and they are all writing to the same data drives, sharing RAM cycles, etc. then you have less performance per VM then if you had the dedicated server solely at your disposal.
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Do you mean 4 VPS running on one hardware need only one license of MS Server?
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