Cloud computing and virtualization are not interchangeable terms, nor are they two different options to choose from when building your IT environment, system, or networks. Virtualization was created in the 1960s to maximize hardware resources by creating a virtual layer on top of a host or a computer. Virtualization is at the core of cloud computing. Thanks to it, cloud vendors can provide a wide range of different services, operating systems, and other virtual machines while maximizing data centers.
SEE: What Is Private Cloud? (TechRepublic)
What is cloud computing?
Cloud computing revolutionized IT infrastructures by removing hardware and software costs from the equation and allowing customers to access these resources via the internet. Cloud computing resources include physical and virtual services, applications, data storage, development tools, AI-powered services, and VMs.
Cloud assets are hosted at cloud data centers and managed by cloud service providers. Cloud computing allows companies to pay only for what they use, operate with high levels of security, automate with built-in cloud features, and leverage innovations like machine learning.
Cloud computing can run on public clouds offered by vendors like Google Cloud, Microsoft Azure Cloud, and Amazon Web Services, or on private clouds.
SEE: What Is Public Cloud? (TechRepublic)
Key features of cloud computing
- Lowers costs while improving access to technology: Organizations can access the latest technology without having to invest in expensive hardware and software.
- Improves deployment and return on investment: It reduces the time it takes for companies to begin operating, and it rapidly impacts performance and returns on investment.
- Services, support, and security: Cloud vendors offer a wide range of services, full support for all level of workers, and built-in security. These features reduce costs and can strengthen an organization’s security posture.
- Virtualized IT: Organizations can quickly create their virtualized IT infrastructure — such as servers, operating systems, software, and networks.
SEE: What Is Hybrid Cloud? (TechRepublic)
What is virtualization?
Virtualization is the creation of VMs layered over a host. Using software called a hypervisor, users can create several VMs on their data servers, computers, or hosts. For example, if a customer needs to run three different operating systems, macOS, Windows, and Linux, instead of having to power up three machines, the user can create them virtually in just one data center or host.
Cloud vendors make the most of their data centers and hosts by offering all kinds of VMs that can be deployed with just a few clicks. VMs can move from one host to another almost instantly, avoiding the risks of downtime if one host shuts down.
The software that coordinates VMs on a host is called a hypervisor. It acts as an interface between the physical hardware and the VMs, ensuring all VMs have the processing power and resources they need from the hardware.
Type 1 hypervisors (a.k.a. bare-metal) are the most common hypervisors used to create VMs. They interact directly with the hardware and physical resources, replacing the traditional operating system. Type 2 hypervisors run as an application on the OS installed in the main hardware, and are primarily used in endpoint devices to run an alternative OS.
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Key features of virtualization
- Virtual machines: Virtualization creates VMs on main hosts.
- Agility and performance: The ability to create VMs on one piece of hardware gives companies endless possibilities to maximize resources.
- Saves costs: VMs and IT infrastructure can be created on the cloud or other data centers, and VMs also improve disaster recovery and business continuity.
- Virtual OS and Virtual Networks: Organizations can use different OS and networks by deploying VMs, and this allows them to build sophisticated IT architectures while keeping costs low.
- Support DevOps: VMs can easily be turned off or on, migrated, and adapted, providing maximum flexibility for development. They can also serve as test environments, and rapidly migrate and consolidate systems in one server.
SEE: What Is Software as a Service? (TechRepublic)
How do cloud computing and virtualization differ?
Without the concept of virtualization, there would be no cloud computing. The difference between them is that cloud computing is a term reserved for computing resources that are accessible on-demand via the internet. In contrast, virtualization refers to simply creating VMs that are solely software layered on top of a host or main hardware.
On the other hand, cloud computing is a broader term that encompasses everything that the cloud offers, from data storage to AI analytics. Cloud computing is a service usually offered to customers as Infrastructure as a Service, Platform as a Service, and Software as a Service. While virtualization may also be provided as a service, it is more commonly used as a technical term.
SEE: What Is Platform as a Service? (TechRepublic)
The age of discovery
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This article was originally published in October 2022. It was updated by Antony Peyton in June 2025.
