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Virtualization or Cloud: The Best Solution for Your Business

The 21st century has been marked by rapid advances in the field of technology, particularly in the area of virtualization and cloud computing. The two technologies are often confused and used interchangeably, but they are actually quite different. In this article, we’ll provide an in-depth analysis of virtualization and cloud technologies, exploring their similarities and differences, as well as their respective benefits and drawbacks. By the end of this article, you will have a comprehensive understanding of virtualization and cloud technologies, and be able to make an informed decision about which technology is best suited to your needs.

What is Virtualization?

Virtualization is a technology that allows the hardware resources of a single computer to be divided into multiple independent computing environments or virtual machines. The virtual environment runs on top of the underlying hardware, making it possible to run multiple operating systems and applications on the same physical machine. Virtualization is often used to optimize IT infrastructure, increase efficiency, and reduce costs.

Benefits of Virtualization

Virtualization offers a number of benefits, including:

  • Reduced hardware costs: By using virtualization, businesses can reduce their hardware costs by eliminating the need for multiple physical servers.
  • Improved scalability: Virtual machines can be easily scaled up or down to meet changing demands, making them more flexible and cost-effective than dedicated physical servers.
  • Enhanced security: Virtual machines are isolated from each other and the underlying hardware, making them more secure than physical machines.
  • Increased resource utilization: Virtualization allows multiple applications to be run on the same physical machine, resulting in higher efficiency and resource utilization.

Applications of Virtualization


Application Description
Server virtualization Enables server consolidation by creating multiple virtual servers, each running different applications, from one physical hardware system.
Desktop virtualization Allows you to run multiple desktop operating systems on the same computer. Desktop virtualization can either be virtual desktop infrastructure (VDI) or local desktop virtualization.
Data virtualization Gives users the opportunity and ability to manipulate data using an abstraction environment that runs outside of the actual database and data structure.
Storage virtualization Allows all storage devices connected to the network to be managed as a single storage system.


What is Cloud Computing?

Cloud computing is a form of computing in which applications and services are delivered over the internet, allowing users to access them from any device with an internet connection. Unlike traditional computing, cloud computing does not require users to have any knowledge of infrastructure or hardware, as all the resources are managed by a third-party service provider.

There are three primary models for cloud computing: Software as a Service (SaaS), Infrastructure as a Service (IaaS), and Platform as a Service (PaaS). SaaS is the most popular cloud-based service and provides access to software or applications through a web browser or mobile app, without any hardware or software installations. IaaS allows businesses to acquire virtualized IT resources and services, such as servers and storage, from a third-party provider, scaling their resources when needed. PaaS offers an environment for developers to build and test applications in development, without having to install and configure their own integrated development environment (IDE). With these cloud computing options, businesses can enjoy improved efficiency, cost savings, and access to a wide range of services.

Benefits of Cloud Computing

Cloud computing offers a number of advantages, including:

  • Cost savings: Costs are typically lower than traditional computing, as users only pay for the resources they use.
  • Scalability: Cloud computing resources can be quickly and easily scaled up or down to meet changing demands.
  • Flexibility: Cloud applications can be accessed from any device with an internet connection, allowing users to work from anywhere.
  • Business continuity: Backup solutions and disaster recovery are practically guaranteed with cloud computing because clouds are designed in such a way that servers are mirrored across various data centers in different parts of the world.
  • Enhanced collaboration and communication: With the use of cloud-based tools, communicating with colleagues and collaborating on vital documents has never been easier.

Applications of Cloud Computing


Application Description
Big data analytics With data being a valuable commodity today, cloud tools are used for big data analytics, tapping into vast pools of structured and unstructured data to harness relevant business insights over highly scalable cloud environments.
Collaboration and communication tools Cloud computing is used widely in work teams who need to communicate and collaborate often. 
Storage Cloud storage makes it possible for users to store, access, and retrieve files from any web-enabled device, making the process much easier and faster.

So, Virtualization or Cloud Computing—Which is Best?

The short answer is: it depends. 

Ultimately, both virtualization and cloud computing offer their own set of advantages. The best option for businesses will depend on their specific needs and IT goals. Virtualization is ideal for businesses that want to reduce hardware costs, improve scalability, and enhance security. On the other hand, cloud computing is a great option for businesses that want to reduce costs, scale up or down quickly, and access applications from any device with an internet connection. Ultimately, the decision should be based on the business’s individual needs and requirements. 

A Head-to-Head Comparison


Key Area Virtualization Cloud
Service Type Licensing SaaS, IaaS, PaaS
Installation Installed on on-premises servers. With infrastructure on hand, setup typically requires installing hypervisor software to create and manage VMs, plus the OSs and applications that run on top of it. No need for any installation whatsoever for SaaS platforms, while IaaS and PaaS services require installation and configuration of software (e.g., OSs and applications), but not the hypervisor software.
Scalability Can support VMs according to the capacity of the physical hardware. More host machines may be added, but this would require additional spending for physical infrastructure. Cloud capacity is practically limitless, with the service provider taking care of the hardware requirements. Allows companies to scale up or down according to their needs.
Flexibility Although you can spin up or spin down VMs easily, you still have limited flexibility if you consider the substantial hardware requirements. Optimal flexibility, as you don’t need to worry about hardware. Various types of cloud deployments and delivery models allow companies to try different solutions and upgrade as needed.



Requires dedicated hardware to create multiple virtual machines. No hardware needed whatsoever.
Integration Can integrate with private and public clouds, databases, IoT devices, and legacy applications (with additional software). Can integrate with existing solutions and applications, but legacy software may require some workaround.
Disaster Recovery Allows companies to create multiple redundancies of a VM to avoid extended downtime even if a server fails. Most cloud service providers maintain multiple data centers across the globe to ensure that organizations have access to their data anytime.

Virtualization or Cloud Computing: Key Considerations 

When it comes to allocating IT resources, it can be hard to know which options will work best for your organization. Virtualization is ideal for those looking to maximize the use of their existing hardware and save on administrative and operating costs. Cloud technologies, alternatively, are designed to provide additional computing power to companies without the budget for costly IT infrastructure. However, if you already have a virtualized environment, it may make more sense to move to a cloud if the demand is likely to exceed your capacity. 

Beyond cost, scalability, and flexibility, privacy is a significant factor to consider. Organizations that use the public cloud are sharing the data center with other companies and trusting the security of their data to a third party.  

As both virtualization and cloud computing have their own benefits and drawbacks, it is important to evaluate their suitability for your organization’s needs. Careful consideration of the factors involved will help to make the best decision.

Still Undecided? We Can Help.

With 30+ years of experience in the industry and a vendor-neutral approach to technology, our cloud computing and virtualization experts can help you decide which solution is right for your business. Our team can audit your existing systems, review what you need to achieve, and provide you with the best solution that fits your budget, timeframe, and desired business outcomes. With our deep understanding of both virtualization and cloud computing, we can help you make the right decision for your business.