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When you order a VPS, the virtualization technology determines how resources are shared. Proxmox on KVM offers real virtualization with isolated resources.
What KVM is
KVM is a Linux kernel virtualization technology that creates virtual machines with their own operating system and isolated resources, as if they were physical servers.
What Proxmox is
Proxmox is a management platform for virtual machines on KVM. It lets you create, start, stop, snapshot and administer VPSs robustly.
Why real virtualization matters
With KVM your resources (vCPU, RAM, disk) are isolated and not shared with other customers like in container-type virtualization. That gives stable performance and more freedom: your own kernel and any operating system.
Proxmox at ViaHost
At ViaHost, VPSs run on Proxmox/KVM, with a management panel, noVNC console and snapshots included.
FAQ
For a VPS, KVM gives better isolation and freedom (your own kernel, any OS). Containers share a kernel and are more limited.