What is data center virtualization?

Physical servers provide “host” machines for multiple virtual machines (VMs) or “guests”. A hypervisor running on the physical server allocates host resources (CPU and memory) dynamically to each VM, thus enabling multiple VMs to run on a single physical server. This significantly helps reduce hardware and hosting costs. Virtualization software examples are Vmware, Hyper-V, KVM, and Xen, among others.