Virtualization in cloud computing means more efficient ways of deploying applications

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What is virtualization in cloud computing?

Virtualization in cloud computing is like buying a share in a large cargo container to ship just a few items. You don’t need the whole container, you only need a tiny portion of it. So the shipper allows you to ship your few items with the understanding that they can fill it with other customers’ goods. The value of virtualization in cloud computing is ultimately being able to ship items in a large cargo container without having to buy the entire thing, which maximizes the efficiency of the use of expensive resources for the provider, while giving you access to resources that you would not normally be able to afford. It’s not that you can’t buy your own cargo container—certainly, you can build your own cloud if you think you’re going to use enough of it, or have the wherewithal to afford it. A key factor in realizing the business benefits of virtualization, though, is the use of many large containers without the cost of owning and managing them.

Tapping economies of scale

Cloud computing enables organizations to scale up as required (or even scale back) because compute, networking and storage can be added as needed without having to physically spin up new equipment. In the case of server virtualization, a physical server is segmented into multiple virtual servers; going back to the shipping container example, you can portion off only the section of the container that you

need to send your cargo.   Your virtual server shares the same processor, operating system and memory resources with other virtual servers on the same physical equipment. You might segment a server into different virtual instances for each line of business—human resources or marketing and finance, for example—because each department on its own only needs a small portion of the capacity available on the physical servers.

What is so nice about this arrangement is that the shipping container or the virtual server looks like it is exactly the size you need for your goods or applications.  You are not aware that it is actually a much larger container that has hundreds or thousands of other users just like you sharing it.  This multi-tenancy enables hyperscalers to pass cost savings to customers because they’re able to gain economies of scale from the investment they’ve made in the physical infrastructure.

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