Virtualization allows computer resources to be abstracted and shared. It involves simulating hardware to run virtual machines that behave like physical computers. A hypervisor manages virtual machines and allocates resources to them. Virtualization provides benefits like efficient resource use, increased availability, disaster recovery, and on-demand scaling. While it adds complexity, virtualization is commonly used to virtualize desktops, run specific programs, create test environments, design private clouds, and utilize public clouds. Major vendors provide virtualization software and cloud services.