A VPS or VM is a virtual dedicated server. This means you can install pretty much any applications or add-ons that you need, and set them up exactly as you need them. You will have full administrative\root access to the VPS and so can set it up exactly as you require. You would only need to bear in mind the physical limitations (disk space, RAM, CPU) of your VPS.
There are some restrictions with the legacy VPS packages in relation to major Operating System changes (for example change the Operating System outright, or perform a dist-upgrade in Ubuntu). You can see the following for more information on this: https://help.blacknight.com/entries/22929433-who-is-in-charge-of-updating-or-patching-the-vps-vm
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