"Virtualization is the process of creating a software-layer (virtual) representation of something rather than a physical one. 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 provides several benefits such as;
IT organizations are challenged by the limitations of today’s x86 servers, which are designed to run just one operating system and application at a time. As a result, even small data centers have to deploy many servers, each operating at just 5 to 15 percent of capacity—highly inefficient by any standard.
By consolidating your server hardware with a hypervisor your organization can increase existing hardware utilization from as low as 5 percent to as much as 80 percent. You can also reduce energy consumption by decreasing the number of servers in your data center. Server virtualization can reduce hardware requirements by a 15:1 ratio, enabling you to lessen the environmental impact of your organization's IT without sacrificing reliability or service levels. Server and desktop hardware consolidation can also help you achieve a 20 to 30 percent lower cost per application, as well as defer data center construction costs by $1,000 per square foot.