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An Operating System is the software which communicates with the hardware of a PC and works as the intermediary between apps and the hardware, which includes peripherals such as a printer, a mouse or a keyboard. When you run an app, it transfers requests to the OS using an API (Application Program Interface) and the interaction is done through a command line or a Graphical User Interface (GUI). Identical to a personal computer, hosting servers also use an Operating System which acts as a host for all of the software installed on them, which includes script applications or server-side software such as a flash server, a VOIP server, and many others. A virtual machine can be created on a physical one, so you will be able to install a guest OS on it and have a different system environment compared to the physical server host OS.