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Taken from:

Apache Virtual Host documentation

The term Virtual Host refers to the practice of maintaining more than one server on one machine, as differentiated by their apparent hostname. For example, it is often desirable for companies sharing a web server to have their own domains, with web servers accessible as and, without requiring the user to know any extra path information.

Apache was one of the first servers to support IP-based virtual hosts right out of the box. Versions 1.1 and later of Apache support both, IP-based and name-based virtual hosts (vhosts). The latter variant of virtual hosts is sometimes also called host-based or non-IP virtual hosts.