Virtualization: Hosting all of a physical machine's hardware and software components independently on a single or shared hardware resource. In virtualization, we can run multiple operating systems on a single machine at the same time. In the case of dual-boot, we can run an OS at a time. Virtual Machine: VM is the set of virtual hardware devices, virtual RAM and virtual CPU that run like a traditional operating system. Virtual Server: It is also a virtual machine running as a server. It can run one or possibly more server-based application. This server may be a database or messaging or anything else. VMM (Virtual Machine Monitor): VMM consists of multiple virtual machines top of the hypervisor to handle all the VMs. Hypervisor: Hypervisor consists of multiple VMs and communicates with the real hardware to provide the resources to the available virtual machines. It controls all the physical resources on the computer. two types of the hypervisor exist as shown in the below diagram.