Virtualization allows for the creation of virtual testing environments that can be easily configured, maintained, and reproduced. This helps address challenges in software testing like the need to test across different environments with limited hardware resources. While techniques like using multiple physical devices, system partitioning, and disk cloning were considered, they presented limitations in cost, scalability, and hardware utilization. Virtualization was determined to be the optimal solution as it abstracts computer resources, reduces costs, simplifies testing requirements, and improves reproducibility of environments.