Virtualization enables the creation of virtual versions of computing resources, such as servers, storage, and networks. This technology allows multiple virtual machines to run on a single physical server, optimizing resource utilization and reducing operational costs. Virtualization facilitates easier resource management, scaling, and backup processes, as virtual instances can be quickly deployed or replicated without physical hardware constraints. Additionally, it supports test environments and improves disaster recovery solutions. Overall, virtualization enhances flexibility and efficiency in managing IT infrastructure, leading to better performance and resource allocation.