Oracle VM allows users to install virtual machines on physical servers. It requires installing Oracle VM Server on a physical computer along with Oracle VM Manager which is used to manage multiple VM Servers. The document provides step-by-step instructions for installing Oracle VM Server which formats disks and installs a Linux-based management operating system. It then describes installing Oracle VM Manager which is a web-based application used to centrally manage multiple VM Servers. Minimum hardware requirements are also outlined for both Oracle VM Server and Oracle VM Manager installations.