- Virtualization allows multiple operating systems to run concurrently on a single physical machine by presenting each virtual operating system with a virtual hardware environment. A hypervisor manages access to the physical hardware resources and isolates the virtual machines. - Cloud computing extends virtualization by allowing virtual servers and other resources to be dynamically provisioned on demand from large shared computing infrastructure. This improves flexibility and allows users to pay only for resources that are consumed. - The hypervisor software manages the virtual machines and allocates physical resources to each one while isolating them from each other. Example hypervisors include VMware, Xen, and KVM. Virtualization improves hardware utilization and makes infrastructure more flexible and cost-effective.