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Server virtualization is a cost-effective way to provide web hosting services and effectively utilize existing resources in IT infrastructure. Without server virtualization, servers only use a small part of their processing power. This results in servers sitting idle because the workload is distributed to only a portion of the network’s servers. Data centers become overcrowded with underutilized servers, causing a waste of resources and power.

By having each physical server divided into multiple virtual servers, server virtualization allows each virtual server to act as a unique physical device. Each virtual server can run its own applications and operating system. This process increases the utilization of resources by making each virtual server act as a physical server and increases the capacity of each physical machine.