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Concept
Hardware virtualization
Summary
Hardware virtualization is the virtualization of computers as complete hardware platforms, certain logical abstractions of their componentry, or only the functionality required to run various operating systems. Virtualization hides the physical characteristics of a computing platform from the users, presenting instead an abstract computing platform. At its origins, the software that controlled virtualization was called a "control program", but the terms "hypervisor" or "virtual machine monitor" became preferred over time.
The term "virtualization" was coined in the 1960s to refer to a virtual machine (sometimes called "pseudo machine"), a term which itself dates from the experimental IBM M44/44X system. The creation and management of virtual machines has also been called "platform virtualization", or "server virtualization", more recently.
Platform virtualization is performed on a given hardware platform by host software (a control program), which creates a simulated computer environment, a virtual machine (VM), for its guest software. The guest software is not limited to user applications; many hosts allow the execution of complete operating systems. The guest software executes as if it were running directly on the physical hardware, with several notable caveats. Access to physical system resources (such as the network access, display, keyboard, and disk storage) is generally managed at a more restrictive level than the host processor and system-memory. Guests are often restricted from accessing specific peripheral devices, or may be limited to a subset of the device's native capabilities, depending on the hardware access policy implemented by the virtualization host.
Virtualization often exacts performance penalties, both in resources required to run the hypervisor, and as well as in reduced performance on the virtual machine compared to running native on the physical machine.
In the case of server consolidation, many small physical servers can be replaced by one larger physical server to decrease the need for more (costly) hardware resources such as CPUs, and hard drives.
Official source
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