RAM is an abbreviation for Random Access Memory. This is a sort of computer memory, that, unlike other storage devices including harddrives or DVDs, permits the data to be accessed directly without reading the previous content located within it. Each time a program is launched, it's stored inside the RAM, because it could be accessed much quicker than if it was read from another media device. In terms of the hosting service itself, additional RAM means that more web applications can run all at once on a certain hosting server, especially when they are resource-demanding and are accessed by a great number of of people concurrently. Different from a shared web hosting solution in which the resources of a given account could be flexible and often depend on what other end users consume too, a VPS offers a guaranteed amount of RAM you can use always. That memory is assigned to one hosting server only and won't be used by other customers even when it is not being used.