It can be described as a technology in which any application or operating system is abstracted from its actual physical layer. One key use of the virtualization technology is server virtualization, which uses a software called hypervisor to abstract the layer from the underlying hardware. The performance of an operating system running on virtualization is as good as when it is running on the physical hardware. However, the concept of virtualization is popular as most of the system and application running do not require the use of the underlying hardware.
Physical vs Virtual Architecture