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VMs are software-based environments that function as independent computers within an existing hardware system. They use a piece of software called hypervisor to separate hardware resources such as memory, CPU and storage. Then a virtual machine could run an operating system (OS) like Windows for business applications, and Linux for software development.

Virtual systems lower the risk of a system breakdown, and let you restore your data quickly to a previous point in time. It also enables you to test and deploy both legacy and new applications in a sandbox to ensure that they work as expected, without disrupting production.

The ability to run multiple VMs on a single physical server means that you will require less equipment and lower operational and capital costs. It also eliminates duplicate backup systems and reduces the amount of data that you need to manage. Cloud-based VMs allow you to access your data wherever you have an Internet connection, eliminating the need for offsite storage.

A VM can run on any hardware that meets your performance requirements, including desktops and servers. Each Hypervisor has pros and cons that are important for small-sized companies. One of the most popular options is VMware VSphere with ESX/ESXi. It is a enterprise-ready solution that offers enhanced security hosts that can be built with up to 128 vCPUs as well as 6TB of RAM, access via role-based access, extensive logs and auditing. Microsoft Hyper-V is another popular alternative. It is cheaper and simpler to manage than vSphere but has the same capabilities.