What is the Difference Between Virtualization and Cloud Computing?

The lines between virtualization and cloud computing are often blurred, especially since the two can work in conjunction with one another to bolster productivity; but with the two offering distinct benefits to business owners, now is the time to understand their chief differences. Virtualization refers to the virtual version of an operating system, server, storage device or network. It is physical infrastructure, and it can be used to provide cloud computing. Cloud computing, on the other hand, is a service that allows business to store and access applications and data on virtual servers rather than physical hardware.

Virtualization is a single physical host server that combines multiple servers, enabling users to cut down on hardware and operating costs. Occurring in a local, physical environment, virtualization may have a higher upfront cost, but it will save you big in the long run. .

Meanwhile, cloud computing occurs in a non-local space. For example, businesses can store and access call center applications and data on virtual servers rather than physical hardware. As your user base grows, more resources are consumed and fees increase over time. Virtualization and cloud computing actually work best in tandem; cloud computing can control data from afar – data that is stored on a physical server produced through virtualization. 

Virtualization condenses multiple resources into one server. Its efficient storage capacity allows businesses to run even more efficiently and for agents to be able to find data in one place. Conversely, cloud computing distributes information and management processes over multiple locations and, thus, reduces the total cost of ownership (TCO).

The lesson to be learned here is that by investing in both virtualization and cloud computing, you can maximize your resources; however, it’s important to remember the aspects of long term and short term costs and how it will shape your business.

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