Virtual hosts are used to hosting multiple websites with different domain names from the same hosting server. The primary domain will be the one to which you purchased or setup that web server. The virtual host(s) is available on Apache(web) servers that further allows you to host other websites that have to be served on other domain names, but without changing the hosting server, thus allowing you to create multiple directories in the same hosting server and host many domains from the same server without them getting entangled with each other's resources, configuration, file/folder permissions, and other aspects.
 
Virtual hosting is a method for hosting multiple domain names (with separate handling of each name) on a single server (or pool of servers). This allows one server to share its resources, such as memory and processor cycles, without requiring all services provided to use the same host name
 
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