Virtualization is the process of creating a virtual version of computer hardware, storage, or network resources to run multiple operating systems and applications simultaneously on a single physical machine. Virtualization software mimics the functions of physical hardware, allowing businesses to make the most of their hardware resources while improving efficiency, flexibility, and security.
Virtualization software is one of the fastest-growing technologies, with heavy hitters like Amazon, IBM, Google, and Oracle competing in this space. Analysts project that the virtualization software market will grow from $38.7 billion in 2020 to $189.4 billion by 2027.
For small businesses, virtualization provides a way to do more with less. The potential cost-saving implications of virtualization are worth following as this technology grows to become more accessible in the next decade.
How does virtualization work?
Virtualization is not a new technology; in fact, it’s been around since the 1960s. Only recently, however, has the rise of cloud computing platforms like AWS, Microsoft Azure, and Google Cloud Platform increased its prevalence. These cloud platforms are built heavily on virtualization technologies, allowing users to access scalable computing resources on demand.
Virtualization can be described in non-technical terms as using different "profiles" on a single device. Imagine you have one computer, but you can set it up to act like multiple separate computers. Each of these "virtual computers" can have its own settings, applications, and files, and they can all run at the same time without interfering with each other.
A hypervisor is a mechanism that divides one physical device into multiple virtual devices. “Hypervisors can sit on top of an operating system (like on a laptop) or be installed directly onto hardware (like a server), which is how most enterprises virtualize,” explained Red Hat. “Hypervisors take your physical resources and divide them up so that virtual environments can use them.”
Hypervisors play the important role of managing and allocating the resources of the physical hardware (e.g., memory and processing power) to the different virtual machines.
Many small businesses think they’re too small for virtualization, but it can make economic sense for companies with as few as three or four servers
Joe Mullich, The Wall Street Journal
Types of virtualization
Hypervisors and virtualization have many different applications. Here are just a few ways small businesses can utilize virtualization software:
- Server virtualization: Multiple virtual servers can run on a single physical server, optimizing resource use and reducing costs.
- Desktop virtualization: The desktop environment is separated from the physical device, which allows employees to access their work from various devices and work remotely.
- Network virtualization: To simplify network management, virtualization software creates a “view” that an administrator can use to manage the network from a single console.
- Storage virtualization: Physical data storage is virtualized to create a large unit of virtual storage managed under one piece of software.
There are many other applications for virtualization, but these are some of the core concepts that are on the market today.
[Read more: AI and E-commerce: Simplifying the Sales Process]
What are the benefits of virtualization?
Virtualization is perceived as too expensive for many merchants, but in reality, it can help improve resource management and save money. “Many small businesses think they’re too small for virtualization, but it can make economic sense for companies with as few as three or four servers,” wrote The Wall Street Journal.
Virtualization provides a way to gain more value from your IT investment. For instance, instead of purchasing multiple servers for each application, small business owners can run multiple services on a single physical host. Using fewer servers also leads to lower cooling and heating costs; one small business was able to save 50% of utility costs using server virtualization.
Virtualization can also help your team work more efficiently. Making physical computers virtual allows you to apply software automation to key processes in your business operations. Many virtualization platforms offer automation tools for tasks like backups, updates, and resource allocation, reducing the workload for IT staff and the need for error-prone manual update processes.
Finally, virtualization enhances security. Virtualization allows you to segment your business-critical data, minimizing the impact of a data breach. “Even if one virtual machine is compromised, the infection is contained and unable to spread to others,” wrote Veeam, an IT company. “You can also take snapshots of virtual machines and roll them back to a previously uninfected state.”
[Read more: How AI is Leveling the Marketing Playing Field Between SMBs and Big Business]
CO— aims to bring you inspiration from leading respected experts. However, before making any business decision, you should consult a professional who can advise you based on your individual situation.
CO—is committed to helping you start, run and grow your small business. Learn more about the benefits of small business membership in the U.S. Chamber of Commerce, here.
