An Operating System is the software that interacts with the hardware of a computer and is the intermediary between all the applications and the hardware, including peripherals such as a printer, a computer mouse or a keyboard. When you run software, it transfers requests to the OS using an API (Application Program Interface) and the interaction is done via a command line or a Graphical User Interface (GUI). Similar to a personal computer, hosting servers also have an Operating System that functions as a host for all the software installed on them, including script applications or server-side software such as a flash server, a VOIP server, and many others. A virtual machine can be created on a physical one, so you can install a guest OS on it and have a different system environment in contrast with the physical server host Operating System.