Virtual PC allows multiple operating systems to run simultaneously on a single computer by creating separate virtual machines (VMs). Each VM acts like a fully independent computer with its own processors, memory, storage, and network connections. This enables testing and running incompatible operating systems side by side. Virtual PC provides features like shared clipboard, drag and drop between VMs and the host system. It is useful for rapid testing and reconfiguration by developers, support professionals, and architects. A new product, Microsoft Virtual Server, will provide similar virtualization capabilities for servers.