To answer this question, we first need to understand the Virtualization concept thoroughly.

Virtualization means that a software behaves like a physical object, that is, it behaves and looks just like a hardware. Thus it will perform all the functions that a piece of hardware performs. Therefore, the software can emulate a desktop PC on a server.

This is exactly what cloud-based IT service provides: A space where jobs can be performed and stored without the need for on-premises hardware.

Virtualization in cloud computing can be divided into 6 main categories;

Server Virtualization

With this method, the server space is protected by combining multiple machines into a single server running multiple virtual environments. It is a method which businesses can run the same applications on multiple servers, thereby creating a "fail-safe" position. Even though the machines have different operating systems, each server is independent, so server environments can be moved from one place to another. The savings on hardware is the most obvious benefit of this method.

Data Virtualization

Data virtualization is an approach to data management that allows an application to retrieve and manipulate data without requiring technical details about the data, such as how it is formatted at source, or where it is physically located and can provide a single customer view (or single view of any other entity) of the overall data.

Network Virtualization

Network virtualization is the process of combining hardware and software network resources and network functionality into a virtual network that is a single software-based management entity. Network virtualization includes platform virtualization, often combined with resource virtualization.

Storage Virtualization

In this method, the servers do not know exactly where their data is stored and instead act like worker bees in a hive. Storage Virtualization enables data from many sources to be managed and used as if it were in a single repository.   software thus provides a smooth operation process, consistency in performance and enhanced functionality, despite any equipment changes or malfunctions.

Desktop Virtualization

Unlike other methods, this method simulates the load of a workstation rather than a server and allows this user to access the desktop remotely. Because the workstation runs on a data center server, access to it can be both more secure and portable.

Application Virtualization

Application Virtualization helps users access applications remotely. The server stores all the features of the application and all personal information, but can still run on a local workstation over the internet. An example of this is a user who needs to run two different versions of the same software.

Virtualization software allows you to run multiple operating systems and applications simultaneously on the same server. This will lower a company's existing hardware costs and thus increase its productivity. It would not be wrong to say that virtualization is the basic technology that powers cloud computing. Virtualization is paramount to cloud compositing