VPS = virtual private server. Im assuming he meant a server that you can rent. there are tons of companies that offer this kinda service.
if you wanna host a server for a couple of people then a VPS with 8gb of ram will do just fine. the only disadvantage in this case is that the server will load much slower, other than that if you're not planning on hosting a server for hundreds of people then it will be ok.
your best approach is to get a vps with SSD storage since most of the servers have very little ram and the process memory will be stored in page file.