What it means
A virtual machine has its own guest operating system and allocated resources on a host. The resource policy determines how CPU, memory, storage and network capacity are shared.
For hosting
Check allocation guarantees, recovery options and the exact plan resources. Root access normally means you maintain the guest system and applications.
Which allocations are actually guaranteed?
Compare CPU policy, reserved memory, storage behaviour and network limits. A matching core count does not establish identical performance under contention.