RAM is an abbreviation for Random Access Memory. This is a sort of computer memory, which, different from other storage devices such as harddrives or DVDs, enables the information to be accessed directly without reading the previous content saved in it. Anytime an app is launched, it is stored inside the RAM, due to the fact that it may be accessed considerably quicker than if it was read from another media. With regard to the website hosting service itself, additional RAM means that more web applications can run at the same time on a certain hosting server, particularly if they are resource-demanding and are accessed by a significant number of people concurrently. Unlike a shared web hosting plan in which the resources of a given account may be flexible and quite often depend on what other end users consume also, a VPS provides a guaranteed amount of RAM which you can use always. That memory is allocated to one web server only and will not be used by other customers even if it's not in use.