Virtualization plays a key role in cloud computing by allowing for the efficient sharing of hardware resources. It allows a single physical machine to run multiple virtual machines, maximizing resource utilization. Common forms of virtualization include server, storage, network, desktop, and memory virtualization. A hypervisor manages virtual machines and provides an abstraction layer between hardware and software. Virtualization provides benefits like cost effectiveness, flexibility, and isolation of applications and operating systems. It is an important technology enabling cloud computing services.