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The partitioning of a physical server into smaller
virtual servers. In server virtualization the resources of the server itself are
hidden, or masked, from users, and software is used
to divide the physical server into multiple virtual
environments, called virtual or private servers. One common usage of this
technology is in Web servers. Virtual Web servers
are a very popular way of providing low-cost web hosting services. Instead of
requiring a separate computer for each server, dozens of virtual servers can
co-reside on the same computer. There are several ways to create a virtual
server, with the most common being; virtual machine,
operating
system-level virtualization, and paravirtual machine.
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 EnterpriseNetworkingPlanet
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Open Networks Today
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VMware: The Virtual Desktop, The Virtual Server
Virtual computers are often better than real ones. When I was younger and a systems analyst for IBM's System/370 mainframe, all my work centered on virtual machines; thanks to the design of the mainframe hardware, my software never "saw" the real hardware, but merely a VM image, common to all System/370 models, that provided a consistent runtime environment not only for me, but for hundreds of simultaneous user sessions.
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