Virtualization has its origins in mainframe computing from the 1960s. It allows a single physical server to run multiple virtual machines, each with its own operating system and applications. This addresses challenges from the 1990s and 2000s as companies had many single-purpose physical servers with low utilization rates, high costs, and management complexity. Virtualization software introduces a hypervisor layer that partitions resources and isolates virtual machines so multiple operating systems can run independently on the same physical hardware. Today virtualization delivers benefits like server consolidation, high availability, disaster recovery, and rapid provisioning to improve efficiency and reduce costs.