Virtualization in cloud computing can reduce the resources and costs involved in running operating systems, making it easier to test applications in multiple environments. As more organizations adopt cloud computing technologies, virtualization has become a favorable method for digital transformation.
The global cloud computing market is a rapidly growing one, projected to reach $2.39 trillion by 2030 according to Grand View Research.
The ongoing popularization of virtualization software for cloud computing is fueled by positive aspects like increased flexibility, energy efficiency, and improved uptime. But while virtualization may have its perks, there are downsides to the technology that make some developers hesitant to take this approach.
SEE: What Is the Difference between Cloud Computing and Virtualization? (TechRepublic)
What is virtualization?
Virtualization in cloud computing describes the utilization of software solutions to run multiple operating systems on an abstraction layer. The software takes operating systems that are disjointed from their underlying hardware and creates virtual machines acting as stand-alone computers. This makes it possible for users to run these systems on the abstraction layer simultaneously on one physical server.
SEE: What Is Private Cloud? (TechRepublic)
Drawbacks to virtualization
There are some negative aspects to consider.
Cost
While some may view it as cost-effective, implementing virtualization software can be expensive. This is because it involves upfront costs that are required for the acquisition of the software and hardware that the process relies upon.
Purchasing new tools may be more burdensome for some organizations than others, depending on the resources they already have access to within their existing network. While virtualization can save your organization costs in the future, the price of servers and software licenses necessary to make this transition is a hefty investment, especially for smaller businesses.
Limitations
Not all software solutions have adapted to virtualization yet, which means using it in cloud computing could limit the servers and applications you can utilize.
As vendors are still working toward the adoption of virtualization, software licensing can still pose problems. While this issue is lessening with the growing adoption of virtualization, it is still vital for organizations to find out how their resource vendors interpret the use of their products in virtualized environments.
Scalability complications
It can cause complexities in scaling operations, as each solution your operations depend upon would need to be available through virtualized cloud computing. The time-consuming task of ensuring the availability of all necessary components may cause some to reconsider this option.
Another consideration is that virtualization networks are prone to lagging due to growth, as multiple entities would be relying on the same resources within a network. Therefore, organizations that grow to maintain a more significant presence in the network may cause issues for smaller organizations trying to access these shared resources.
Security risks
Virtualization software requires users to rely on third-party providers to host their servers that will contain their organizational data. Unfortunately, entrusting third-party solutions with sensitive information can increase the risk of data security breaches.
Another option to protect sensitive data would be to make additional purchases supporting your data security within the virtualized environment. Solutions like security software, insurance, and risk monitoring tools could help to ensure the safety of sensitive data but would require additional expenditures.
Server sprawl
Server sprawl refers to the state of creating too many servers when allocating resources. Creating more servers with virtualization is simple, but managing them is not quite as easy. This means that generating unnecessary servers can cause more stress and difficulty, as users are then required to manage them.
Knowledge requirements
Installing virtualization software and operating within this new infrastructure can be a significant change for users. An organization may need to help its teams adjust to this transition by using training resources that would likely require effort and expenses to be effective.
SEE: What Is Public Cloud? (TechRepublic)
Virtualization use cases
Making the transition to virtualization in cloud computing can present challenges, but developing a strategic approach can reduce some of the complexities and limitations. Though not all servers and software tools are adaptable, users can still function with access to virtualized solutions by utilizing a hybrid system.
Some common use cases include operations requiring content to be divided separately and securely between systems and users. Virtualization enables users to store sensitive content, which is why many organizations that handle highly private data choose to protect it by using virtualization technology. It can also make it easier to perform fast disaster recovery, as organizations can back up or transfer entire operating systems.
Virtualization supports the cloud streaming process and is likely to gain more traction as organizations continue to transition to digital environments. Maintaining knowledge about its potential risks can enable users to operate their virtual environments wisely and solve the difficulties of maintaining cloud computing.
SEE: What Is Hybrid Cloud? (TechRepublic)
Further reading
If you wish to explore this topic more, there are plenty of cloud-related articles at TechRepublic here.
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This article was originally published in October 2022. It was updated by Antony Peyton in June 2025.