Virtual Servers and Virtualization Technology

Last Update: 28.04.2026

Virtualization Technology was first discussed as an idea in the 1950s and was developed by IBM in the mid-1960s. This technology was initially implemented on IBM System/360 mainframe computers, enabling multiple virtual machines (VMs) to run on the same physical hardware.

Virtualization is a software layer that allows the sharing of hardware resources (CPU, memory, storage, network) on a physical server among virtual servers. This process is typically managed by a hypervisor.

Hypervisor

A hypervisor (or Virtual Machine Monitor) is software that allows the creation and management of multiple virtual servers (VMs) on a physical server. Its primary function is to share physical hardware resources among virtual servers and ensure that each virtual server operates independently.

Type 1 Hypervisor (Bare-metal)

Type 1 hypervisors run directly on physical hardware. They operate without an underlying operating system, interacting directly with the hardware to run virtual machines. Examples include VMware ESXi, Microsoft Hyper-V, and KVM.

Type 2 Hypervisor (Hosted)

Type 2 hypervisors run on top of an existing operating system. They are popular among developers and individual users due to their ease of use. Examples include Oracle VirtualBox, VMware Workstation, and Parallels Desktop.

Applications

Virtualization is the backbone of modern data centers and cloud computing. It allows for hardware consolidation, reduced energy consumption, and high scalability. Cloud providers use this to offer on-demand resources to businesses worldwide.

Shared Virtual Servers

In shared environments, multiple users share the resources of a single physical server. This is often combined with shared IP addressing to overcome IPv4 depletion and reduce hosting costs for small businesses.