The hypervisor handles creating the virtual environment on which the guest virtual machines operate. It supervises the guest systems and makes sure that resources are allocated to the guests as necessary. The hypervisor sits in between the physical machine and virtual machines and provides virtualization services to the virtual machines. To realize it, it intercepts the guest operating system operations on the virtual machines and emulates the operation on the host machine's operating system.
The rapid development of virtualization technologies, primarily in cloud, has driven the use of virtualization further by allowing multiple virtual servers to be created on a single physical server with the help of hypervisors, such as Xen, VMware Player, KVM, etc., and incorporation of hardware support in commodity processors, such as Intel VT and AMD-V.