Do you have a software protection solution to cover the VPS case?
A VPS is just another name for a Virtual Machine. OK, there's a bit more to VPS, but the basis of a VPS is to run multiple "instances" of an operating system on one computer.
So, yes, TurboActivate can run on a VPS -- TurboActivate will activate like it was on any other computer. And VPSs tend to reflect the underlying hardware rather. This is in contrast to certain VM configurations in which copied instances on separate hardware can be made to look like they're running on identical hardware.
Also, it's very unlikely, and frankly silly, for 1 customer to be running your app on multiple VPS instances on a single piece of hardware.
So, just enable VM activations for your product version and everything will just work. Or, enable the VM activations on a case by-case basis (i.e. per product key).
Tell me if that helps.