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Definitions of virtual dedicated server:

Virtual Dedicated Server (VDS) software provides a method of virtualization that enables server customers to have an environment that behaves as if the server was completely dedicated to them.
en.wikipedia.org/wiki/Virtual_Dedicated_Server
In computing, Virtual private servers are a means of splitting a single physical server into multiple virtual servers. Virtual private servers are sometimes called virtual dedicated servers. The practice of partitioning a single server so that it appeared as multiple servers was common practice in the days of mainframe computers, but has seen a resurgence lately with the development of software such as User-mode Linux and Xen.
en.wikipedia.org/wiki/Virtual_dedicated_server