Virtualization is the process of creating a software-based (or virtual) representation of something. Virtualization can apply to applications, servers, storage, and networks and is the single most effective way to reduce IT expenses while boosting efficiency and agility for all size businesses. Virtualization uses software to simulate the existence of hardware and create a virtual computer system. Doing this allows businesses to run more than one virtual system – and multiple operating systems and applications on a single server. This can provide economies of scale and greater efficiency.

Virtualization can increase IT agility, flexibility, and scalability while creating significant cost savings. Workloads get deployed faster, performance and availability increase (high Availability) and operations become automated, resulting in IT that's simpler to manage and less costly to own and operate. Additional benefits include:

• Reduce capital and operating costs.
• Minimize or eliminate downtime (High Availability).
• Increase IT productivity, efficiency, agility and responsiveness.
• Provision applications and resources faster.
• Enable business continuity and disaster recovery.
• Simplify data center management.
• Build a true Software-Defined Data Center

Also, Cloud Computing is something you can do using virtualization. Cloud computing describes the delivery of shared computing resources (software and/or data) on demand through the Internet. Whether or not you are in the cloud, you can start by virtualizing your servers and then move to cloud computing for even more agility and increased self-service.