Virtualization is a technology that enables a single physical computer to run multiple virtual machines, each acting as an independent system with its own operating system and applications. This process is managed by specialized software called a hypervisor, which allocates resources such as CPU, memory, and storage to each virtual machine. Virtualization improves efficiency, reduces hardware costs, and increases flexibility by allowing organizations to run different workloads on the same hardware, isolate environments for security, and quickly deploy or scale resources as needed.