I am getting very cheap cloud server hosting packages from atlantic.net and they are saying that, it is VPS in the cloud

But I don't understand, what does vps in the cloud mean? Can anybody please explain and clear my shaddyness?

Here is the link of the VPS in the cloud: :)
http://www.atlantic.net/cloud-hosting/cloud-server-pricing.html

It's a virtual machine (Virtual Private Server) in a cloud environment. They are not managing a hosting center with physical machines, they just use a service like Amazons S3, or Azure for their hosting.

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