An OpenVZ VPS (Virtual Private Server) is a type of container-based virtualization server. OpenVZ is an open-source virtualization technology that allows for the creation of multiple containers within a host operating system.

Unlike hypervisor-based virtualization, such as KVM, where multiple virtual machines with independent operating systems run, OpenVZ creates containers that share the same kernel as the host operating system. Each container is an isolated environment that functions as a virtual instance but does not have its own kernel. Instead, it uses the kernel of the host operating system.

Containers in an OpenVZ VPS share system resources like CPU, memory, and storage, resulting in greater resource efficiency compared to hypervisor-based virtualization. However, since the containers share the same kernel, different operating systems cannot be run in each of them.

OpenVZ VPSs are popular due to their efficiency and lower overhead compared to other virtualization technologies. They are suitable for applications that do not require complete resource isolation and prioritize performance and efficiency over operating system independence.