Virtualization is a technology that allows multiple virtual instances of operating systems, servers, storage devices, or networks to run on a single physical hardware system. By using software called a hypervisor, physical resources are abstracted and divided into multiple virtual machines (VMs), each operating independently and with its own operating system.

In cloud computing, virtualization offers several key benefits:

1. Resource Efficiency

Virtualization maximizes the utilization of physical hardware by allowing multiple VMs to share the same resources, reducing waste and optimizing performance.

2. Scalability

It enables easy scaling of resources to meet varying demand. Cloud providers can quickly allocate more VMs or resources as needed without additional physical hardware.

3. Cost Savings

By consolidating multiple systems onto fewer physical machines, organizations save on hardware, energy, and maintenance costs.

4. Isolation and Security

VMs are isolated from each other, enhancing security by preventing issues in one VM from affecting others.

5. Flexibility and Agility

Virtualization supports a variety of operating systems and applications on the same hardware, allowing for diverse and flexible IT environments.

6. Disaster Recovery and Backup

VMs can be easily backed up and restored, facilitating efficient disaster recovery processes.

In summary, virtualization underpins cloud computing by making it more efficient, scalable, and cost-effective while enhancing flexibility, security, and disaster preparedness.