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are software-based, running on actual, physical, computer hardware. One physical computer can host multiple virtual ones, all of which would function independently from each other.

Virtual Computers

If multiple server computers are required, rather than having a dedicated computer hardware for each one of them, virtualization provides ability to consolidate all servers onto one physical machine that would run at, or near, full capacity. To prevent system unavailability due to hardware failure, multiple physical servers are deployed in an interconnected cluster, which is seen by the system as a single computer.

Physical desktop computers can host multiple instances of virtual ones, each with a different operating system. This is beneficial when multiple OS environments are required either for testing or in the course of regular work. Another implementation is provisioning of virtual dekstops, instead of dedicated physical machines, to the end users working in the office or remotely.

Clouds

When virtualization is exteneded to the networking and data storage, the whole IT infrastructure becomes software defined, while running atop of hardware devices. When such systems are located at the owner's premises, they are called a Private Cloud.

Some owners of the IT hardware infrastructure may choose to lease the overlayed virtualized segments to general public as a business model. In such cases, their subscribers will be allowed access to those segments over the Internet instead of owning hardware based ones on their own premises.

Enterprises may choose to own a Private Cloud on their premises and lease additional virtual infrastructure from a Public Cloud provider. This can be done to ensure smooth disaster recovery or access to additional resources at the times of high loads on their Private Cloud.