Virtualization will benefit companies by saving them large amounts of money. This happens because ‘server virtualization’ allows several systems to be installed and run on one server. This reduces the cost and the amount of hardware that is essential to operate all the software that will be needed by any business. Combing servers with the use of a virtualization process save money because it reduces the number of physical machines that are actually required and the amount of physical space that a company might need if the number of servers was more than one. They physical space can be used for some other purpose which literally amounts to saving money again.

Virtualization gives companies a more accommodating and adaptable way to run applications. Without this flexibility, a company might need five different servers with different and separate operating systems and probably a different set of configurations to use all the applications that are essential to keep the business running. Just the fact that all the operating systems and applications in a company could probably need only one server and use the installed hardware in the most efficient manner is the biggest benefit of virtualization. It makes computer hardware simple because it can be assigned or even reassigned to specific server or device in real time.

Storage virtualization stores data from several devices into what seems to be a single storage facility. Storage virtualization is mostly used in SANs or storage area networks. Network virtualization combines all available resources into a single network by dividing the available ‘bandwidth’ into separate channels. The channels work independently of each other with every channel being made to work on a separate task. Storage virtualization is managed by a central control system.  Virtualization can be seen as a complete movement and development which includes automatic computing. This creates a situation in which the IT environment manages itself according to anticipated activity.

Its best feature is utility computing which means that clients will only pay for the services that they need or use. This helps to centralize administrative work and also improves scalability and workloads. Virtualization provides companies the capability to cheaply outsource a large part of the computing requirements. A single provider usually runs systems for many different companies on a single server. This does not affect the data of the other company because the applications are firmly detached from each other.  Virtualization makes the cost of maintaining one or more servers feasible because many different companies are using the servers and the cost of the equipment and maintenance is divided between several companies.

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