Server virtualization is a way to automate management while still providing control over service to it’s clients. It can also be thought of as a way to mask the server resources including the number and identity of physical servers from server users. The administrator uses some software to divide one physical server into multiple virtual machines. The virtual environments are sometimes called virtual private servers but they can also be known as guests, instances, containers or emulations.

One way that this technology is used is for creating lower-cost structures in virtual hosting for clients. A traditional dedicated server is one entire physical computer being used entirely by only one client. Not every client actually requires an entire machine for themselves however, especially if they are simply hosting a small personal blog for example. So virtualization allows the single physical machine to appear as several autonomous machines. Every single process on that computer is divided among all of the clients using it. Software to manage the virtualization is available and utilized to control the service to each client.