Answer
Server virtualization is a process of masking the physical computing resources of a server or computing device. It can subdivide a single set of machine into multiple logical units that can operate independently in terms of operating system, applications, network identity and services. Virtualization technique can also enable combination of more than one set of computing resources to form a large logical entity which can be allocated in different sizes and slices to different users, applications or services.
To enable such management and scalable allocation of computing resources, virtualization uses a middle layer virtualization enabler or software that sits between the hardware and the operating systems. It also allows a single hardware entity to host multiple operating systems or logical computing devices.
The major benefits of virtualization for a business organization are:
Efficient utilization of resources.
Better management as a single virtual environment and set of physical resources can be used to create and manage multiple logical entities.
Economical for a growing organization as it can start multiple services on a single physical entity.
As the organization grows, the virtualization based system allows addition of resources such as CPU, memory, storage or even additional server machines later on without disrupting the existing operating system or applications and services.
It enables management of multiple instances through a single management console. As a result, a growing enterprise can manage the IT system using minimum number of dedicated human resource.
For a business organization, it is always easier to manage a small number of devices compared to a large number of computers with each running on a different machine with different operating system and physical set of resources. It is efficient for manpower allocation as well as getting external support from vendors or service providers.