How Virtual Machine Hosting Actually Works?

Written By Ananaya Kandpal

Published On December 16, 2025

Reading time: 4 minutes

A virtual machine or VM may not be a buzzword anymore. But have you ever thought about it and how it works? Well, understanding virtual machine hosting and it working doesn't have to be challenging. In fact, it’s one of the most effective ways businesses and individuals can run multiple systems without needing physical hardware for each one.

Without investing in multiple servers, a single solid machine can create several virtual computers, each working independently with its own operating system and applications.

In this post, we are going to discuss the complete process in a very clear way with easy-to-follow instructions. No matter if you are a newcomer or just agog to know about the technology behind cloud hosting, you will cover everything about how VM hosting helps save costs, improve performance, and make IT management far more flexible. So, why are you waiting? Let’s get started.

What is a Virtual Machine?

A virtual machine refers to a virtual computer system or virtual computer that operates on a physical host machine. Virtual machines are also called software-defined computers, or guest computers, or machines. A single physical machine can easily host different virtual machines, each operating independently from the others.

While each virtual machine has its CPU, RAM, and storage, these computing resources are finite and collectively supplied by the host machine. Moreover, virtual machines have been around for a while, but there’s a lot to learn about how they work, their usage, and significance.

Types of Virtual Machines

1. System VMs
2. Process VMs

System Virtual Machines: It enables you to run a complete operating system, including applications and programs, on a single physical machine. You can easily run many operating systems at a time while handling them as entirely separate environments. 

Process Virtual Machines: It enables you to run single processes on a host operating system. For instance, a Java virtual machine is a process virtual machine. Process virtual machines are also called application virtual machines or managed runtime environments.

How does a virtual machine work?

A virtual machine, abbreviated as VM, works by creating a fully functional, software-based computer inside a physical computer. Instead of depending directly on hardware components like CPUs, memory, or storage, a VM uses a special layer called a hypervisor to distribute the host machine’s resources and allocate them to several virtual systems.

Each VM acts just like a real computer; it can run its own operating system, install applications, store data, and perform tasks independently of other VMs on the same server.

The hypervisor exists between the hardware and these virtual systems, ensuring each VM gets the power it requires while keeping them securely separated from one another. This setup enables businesses to run various workloads on a single server, decreasing costs, saving space, and improving efficiency. If one VM needs more RAM or CPU, resources can be adjusted in minutes without using the physical hardware.

Furthermore, VMs can also be cloned, backed up, or moved between servers with ease, which makes maintenance and scalability incredibly smooth. Whether it is about hosting websites, testing applications, or running complete IT environments, virtual machines bring flexibility and reliability that old hardware-based computing can't match.

Understanding the Usage of Virtual Machines

• Testing New Operating System: Suppose you are getting ready to deploy your Windows golden image to new company hardware or migrating users to a new version of Windows. Virtual machines enable you to test the new operating system without affecting users.

• Examining Malware: Malware researchers also prefer virtual machines as sandbox environments to analyze malicious programs and how they work across different operating systems.

• Operating Applications Intended for Other Operating Systems: Are you looking for testing or using an application that only works on macOS or Linux? Virtual machines enable you to operate different operating systems on the same host computer.

• Running Cloud Computing Workloads: Cloud hosting service providers use virtual machines to deliver flexible, scalable cloud computing resources to their customers. From virtual servers to software development platforms, almost all cloud service offerings consist of the use of virtualization technology.

Thus, using virtual machines to perform crucial IT tasks can seem like a big leap of faith, mainly when you are used to working with physical hardware that you can see and touch.