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What is a Virtual Machine? A Complete Guide to Types, Benefits & Use Cases

Written By Ananaya Kandpal Published On August 4, 2025


Reading time: 7 minutes

Summary: This blog is powered by Net2Secure, which offers a detailed overview of Virtual Machines. It describes the two main types of VMs, represents key benefits such as security, flexibility, and cost efficiency to make the concept easier to understand. Whether you are a newcomer or a tech pro, this guide helps you grasp the significance of VMs.

Have you ever wondered how you can run multiple operating systems on a single computer, or test software in a secure and isolated environment? Not yet, here we are. It may be interesting to know that it’s all about Virtual Machines (VMs). They behave like real computers but run inside another system, making them incredibly crucial for developers, businesses, and even everyday users. 

Let’s understand it more transparently with the help of an example below. 

Abhay, a freelance application developer who prefers Windows for daily tasks but requires Linux to test his current project. Instead of buying a new laptop, he installs a Virtual machine on his Windows computer. Within a few minutes, he has a fully functional Linux system operating in a separate window, just like another computer inside his own. 

He codes, tests, and even breaks things inside that virtual setup without ever affecting his main system. When he’s done, he closes the virtual machine down like closing an application. 

Virtual machines have become a cornerstone of modern IT infrastructure. From powering cloud services and streaming software development to helping businesses cut hardware costs and increase efficiency, VMs are everywhere. Whether you are a dedicated beginner, a business owner, understanding how virtual machines work can open the door to smarter computing. 

In this blog post, we are going to discuss what virtual machines are, their types, and their significant benefits. 

 

What is a Virtual Machine?

 

A virtual machine refers to a technology that emulates an entire computing system from the CPU, memory, storage, network interfaces, and OS. VMs take on resources from the physical computer to create these virtual computers. For example, if a computer has 8 CPUs and 16 GB of RAM, we can virtualize an environment with 4 CPUs and GBs of RAM, allocated from the physical hardware. 

We depend on hypervisors, software that manages the virtualization of hardware resources and handles different virtual environments, to manage VMs on a single set of hardware. 

 

Differentiate between Virtual Machines vs. Physical Machines

 

It is crucial to understand how a virtual machine may differ from a physical one. First, start by clarifying the difference between hardware and software. Hardware refers to the physical components of a system, like the motherboard, CPU, memory, GPU, and storage. Software, like the operating system or other programs, operates on the hardware. 

Physical machines operate directly on hardware resources; we can effectively distribute just the crucial resources a VM needs. For example, if we have a solid server, we can operate different VMs that do several tasks in parallel with just the resources required for each VM to perform its task. It can improve the entire resource utilization and cost.

 

Feature Virtual Machine Physical Machine

Scalability

Highly scalable, different VMS can run on a single physical machine.

Limited by the physical machine’s hardware.

Efficiency

Enables better resource utilization by distributing only crucial resources.

May lead to underutilization of hardware.

The Linux OS is portable

Easy to reconfigure and replicate.

Less flexible, needs physical adjustments or replacements.

Flexibility

Most Unix-like OS are not free.

Different paid structures for different levels of Unix.

Cost

Affordable cost due to resource sharing

Higher costs as each machine needs its own hardware

Performance

Slight overhead due to virtualization

Higher performance due to direct hardware usage

 

Types of Virtual Machines

 

When it comes to virtual machines, there are two main kinds of virtual machines:

 

  • System Virtual Machines: System VMs are typically what come to mind when discussing VMs. They replicate a complete operating system, like an entire Linux machine. One piece of hardware can replicate several OS instances in this manner. This is beneficial when we require various environments for different purposes.

    Virtual machines in the cloud are a typical instance. Within them, complete OS environments are hosted and accessed online, making them perfect for scalable infrastructures.

  • Process Virtual Machines: Process VMs are individual processes functioning on a host operating system. They are not a complete system on their own, but rather smaller settings that enable any computer to execute an application that might not be inherent to the primary operating system. The Java Virtual Machine enables any device to execute Java applications natively.

    Process VMs are more lightweight than system VMs and are commonly utilized for executing particular isolated applications, particularly in development and debugging situations.

 

Understanding the crucial components of a Virtual Machine

 

Each virtual machine has a few core components. While the exact implementation may differ, they should all consist of similar parts.

 

  • Hypervisor: A hypervisor refers to the software layer that handles and initializes virtual machines. It managed the resources between the VM and the physical machine. There are two types of hypervisors:

    Type 1 hypervisors sit on top of bare metal and run off the server itself. They usually have direct access to the server’s resources./p>

    Type 2 hypervisors are normally installed on a host operating system. They do not have complete control of the computer’s resources and are instead managed by the host operating system. /p>

  • Virtual Hardware: The VM will receive virtual hardware from the hypervisor. This essentially involves disconnecting the physical resources from the machine and allocating them to the virtual environment. This could involve dividing the RAM, CPU cores, and additional computing resources to enable the VM to execute processes.

  • Guest Operating System: The guest operating system operates inside the VM. It does not have to be the same operating system as the host and can be any operating system. Different VMs on the same hypervisor or server may even have different operating systems depending on their use cases.

  • Virtual Disk: VMs generally have virtual disks to keep information temporarily while they are running. Sometimes, we transfer data from a virtual disk to the host computer’s actual storage system, but that is done carefully to prevent damage to the host.

 

Significant benefits of a Virtual Machine

 

  • Security & Isolation: Since each VM operates individually from the host system, it is naturally isolated. It exceeds security by overcoming the risk of a single system crashing or being breached, becoming a concern. There is generally no communication between VMs, and they are not reliant on each other, so it is easy to shut down problematic VMs or isolate security issues instantly.

  • Flexibility & Portability: VMs provide better flexibility for IT infrastructure because they can be easily changed. It streamlines things when different environments are required to be launched together, as they can share the same start-up instructions. It enables easy testing, backups, and disaster recovery.

  • Resource Efficiency & Cost Savings: Since VMs share the same hardware, you can get much more utilization out of your physical servers by using VMs. Combining different environments lessens the need to purchase hardware specific to a certain use case and instead enables shared resource usage and cost savings.

 

Conclusion

 

Virtual machines are indeed a vital part of the IT ecosystem by enabling you to create different virtual environments from a single server quickly. They are often handled by hypervisor software, which creates and distributes resources as crucial. It enables better resource utilization, reproducibility, and efficiency, mainly when different processes need to operate in parallel. 

These VMs are no longer just tools for developers; they have become crucial in everyday computing, testing, development, and IT operations. Whether you are operating different operating systems, deploying scalable cloud services, or isolated test environments, VMs offer unmatched flexibility, security, and efficiency.

At Net2Secure, we provide powerful and reliable virtual machine hosting solutions needed for businesses of all sizes. Our solid infrastructure, enterprise-grade security, and dedicated technical support ensure that your virtual environments operate effortlessly. No matter whether you’re a freelancer, startup, or settled enterprise, Net2Secure fosters your digital transformation with scalable VM hosting you can rely on.