Virtualization is the process of creating a virtual version of a physical device or software to replace previously used entities. It is possible to virtualize hardware platforms and operating systems, storage devices, and computer network resources.

Virtualization fits within the overall self-management trends in enterprise IT strategies, where the virtualization enables dynamic adjustments to monitored system activities. It fits with the principle of utility computing, in which processing power becomes a utility that clients pay for as needed. In practical terms, IT managers use virtualization to centralize administrative tasks while simultaneously improving factors such as scalability and utilization.