What Is Server Virtualization & Why Use It

Running multiple servers is not only exhausting – it’s also less efficient. That’s why the server virtualization market is growing – from $7 billion in 2020 to a projected $14 billion in 2030. Here’s the most basic info you need on how it works and why it’s the better deal.

What Is Server Virtualization?

Server virtualization is a technology that lets you run many virtual servers on one physical server, separating the software from the hardware. That way, each virtual server can operate independently, which helps to avoid compatibility problems.

By implementing server virtualization, companies can cut back on costs and make better use of their computing and storage resources. It’s a big deal since many servers don’t really use their full capacity, often running at just 15% to 25% of their power. That leads to wasted space – and energy – that virtualization can help save.

Virtual Servers vs. Physical Servers

Virtual Servers:

• Software-based: Created using virtualization software on a physical server.
• Multiple instances: Multiple virtual servers can run on a single physical server.
• Independent: Each virtual server has its own operating system and applications.
• Flexible: Easily scaled up or down based on demand.
• Cost-effective: Makes better use of resources, reducing hardware costs.

Physical Servers:

• Hardware-based: A standalone physical machine with its own hardware components.
• Single instance: Typically runs one operating system and applications at a time.
• Fixed resources: Limited to the resources available on that one machine.
• Less flexible: Scaling often requires purchasing and setting up new hardware.
• Higher infrastructure costs: Physical servers require more space, power, and maintenance but remain essential for high-availability workloads. 

Why Is Server Virtualization Important?

To put it simply, server virtualization benefits companies because it leads to a more efficient use of hardware resources. In fact, 66% of businesses have reported better agility since implementing virtualization.

But that’s not all of the advantages that relying on virtualized environment can bring.

Running the operating systems on virtual servers can cut down the hardware and maintenance costs by as much as 40%, and virtual machines take 50%-90% less time in one-off server management tasks, which allows IT teams to focus on more strategic projects rather than routine maintenance. This can – in turn – lead to better productivity and overall operational effectiveness.

How Does Server Virtualization Work?

Server virtualization works by using software called a hypervisor to divide a physical server into multiple virtual servers, each functioning independently.

It’s kind of like a building with many apartments serving different purposes – each apartment (or virtual server) is separate and has its own setup—different people (applications) can live in each one, even if they have different needs, like heating, electricity, or furniture. The building’s resources, like electricity and water (CPU, memory, storage), are managed and shared by all the apartments.

In the same way, the hypervisor manages the server’s resources—like CPU, memory, and storage—and allocates them to each virtual server as needed. Each virtual server can run its own operating system and applications, even if they're different from the others.

Types of Server Virtualization

1. Full virtualization: relies on a hypervisor to create virtual machines that are independent and each have their own operating system. The hypervisor manages resources and makes sure that they don’t interfere with each other.
2. Para-virtualization: in this type of virtualized environment, the machines are still isolated to some extent but are much more in sync – they are aware of each other and share resources. This way, the hypervisor isn’t as overloaded.
3. OS-level virtualization (containerization): this type of virtualization doesn’t require a hypervisor. Instead, the host OS divides resources into isolated containers. Each container can run its own applications – the only catch is they must share the same underlying operating system.
4. Hardware-assisted virtualization: this kind of server virtualization uses specific hardware features in the CPU to make the job of a hypervisor easier and improve the performance of virtual machines as a result.

Use Cases for Server Virtualization

Server virtualization may sound like an abstract idea – but it has many tangible applications in our everyday lives. From the telemedicine platforms we use to connect with doctors online to e-shops that take care of our experience as customers, virtual servers are often the agents working behind the technology we rely on. In fact, research shows that 53% of enterprises are increasing their x86 server virtualization, which means that their prevalence may become even more common.

Its main use cases in IT include:

• Data center consolidation
• Testing environments
• Desktop virtualization
• Backup and disaster recovery
• Cloud computing
• Increased availability
• Support for multiple platforms
• Legacy application support

Server virtualization can also play a crucial role in enhancing security and facilitating easier management of software updates. As digital solutions grow in dominance, its agility will continue to be an important part of driving business innovation – and more companies will want to take advantage of that.