This is the most common type of virtualization used by businesses. Hardware virtualization is where the physical hardware is virtualized allowing for multiple virtual servers which may run different OS and applications simultaneously on the same hardware.
Similar to hardware virtualization – desktop virtualization separates the logical desktop environment from the physical machine. This means that businesses do not have to invest in powerful client machines (thick clients) rather they can invest in less powerful less expensive machines (thin clients) as the processing work is done within a host computer (i.e. server computer) capable of hosting multiple virtual machines at the same time.