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Virtualization is what makes cloud computing possible. Simply put, virtualization is the ability to take physical data center resources such as servers, storage, and networking and abstract them as services that can be delivered as cloud offerings. A key benefit of virtualization is that it allows different customers to share the same physical IT infrastructure. Without this ability, cloud computing wouldn't be possible.

FIGURE 1.3 Mainframe computing

FIGURE 1.4 Client-server computing

The topic of virtualization can be confusing because people use the term in wildly different ways. In its most basic interpretation, “virtual” can mean anything not purely physical—not a very helpful distinction. Hence, it helps to break virtualization down into two different categories:

 Machine virtualization

 Network virtualization

These distinctions aren't particularly important in the context of cloud computing, but because it's easy to apply the “virtual” moniker to anything and everything, we need to draw some boundaries around when the designation is appropriate.