Virtualization solves the problem of acquisition of server hardware nad applications not fully utilizing server hardware (when applications had a one-to-one relationship with servers)
Virtualization allows for the partitioning of server hardware with the use of a hypervisor by enabling each virtual machine (VM) to use a slice of the central processing unit (CPU) time and share random access memory (RAM).
Due to virtualization, we now have a many-to-one relationship with applications to servers.
Due to virtualization, we can now fit many applications (operating systems) onto one physical server called physical host hardware.
Due to virtualization, each operating system believes that it is the only process running on the physical host hardware (physical server), thanks to the hypervisor.