It is done via virtualization. In our cloud, we use the open source high-performance virtualization KVM (Kernel-based Virtual Machine).
With a virtual server, you do the same as with a dedicated server. With the full root access, you can install any software you like. The only limits are the resources you ordered with your virtual server. The benefits of a cloud VPS is that the server can grow with your needs.
Virtualization proves itself as the premium hosting solution. Not only is it the center of every organization’s money-saving initiative but industry reports say that between 60% and 80% of IT departments are switching to a virtual environment. By reducing the numbers and types of servers that support business applications, companies are engaging in numerous significant benefits.
I recommend you to check our ultimate VPS Hosting Guide with an infographic.