Using the above example, virtual domain web hosting is just similar to it. Your company "rents" a space from our servers, and we will host it on your behalf.
Despite the fact that you are "renting" the space, it would be transparent to your visitors, as officially speaking, you are on the Internet yourself.

Just like a company who has its own servers, you will also have an official domain name (eg. www.yourcompanyname.com.sg or www.yourcompany.com), and you will also get an IP address (just like your home address).

Many domain names or IP addresses can reside on a single server. So when someone visits your website, they actually requests it from a central body, which will direct the visitor to our servers.

Once the visitor "reaches" our servers, our servers will check and decide whether the "addressee" resides at our servers, if yes, the servers will direct the visitor to the appropriate server, directories and files.

As such, each and very individual virtual server owner can have his own setups, html files, pictures, music files etc. etc. The owner can also have his own cgi/java etc. scripts to run. Basically, the virtual server behaves as if it is a single server by itself.

Why should you have such a setup? The answer is simple. By having your own server, you would need to invest on hardware, software and also on persons to setup/maintain the server. Depending on the scale of the setup, it could easily run into tens of thousands of dollars. Some elaborate setups even go up as high as hundreds of thousands of dollars.

You will also need to invest and maintain a digital leased line to the ISP, which could easily set you back by a few thousand dollars PER MONTH!

By using the virtual domain server hosting service, you save a lot of money since you do not need to invest on the setup, not to mention not having to mention the server itself and the expensive monthly leased line rental.

With this solution, you not only save money, but lots of headaches in terms of setups, maintenance etc!