With many businesses actively implementing the latest technologies for spearheading their organizational operations, they often get stuck between choosing what is right for them.

Of all the latest innovations, virtualization and cloud computing are the most-sought solutions in today’s world. While virtualization enables you to create VMs of your hardware setup, the cloud uses those same virtual resources to provide you resources over the network.

The primary difference between virtualization and cloud computing is that virtualization is fundamental for cloud computing. Cloud computing cannot exist without virtualization.

Virtualization Vs. Cloud Computing: Which Is Better For Your Business

Let’s deep dive to know about both of them in detail so that you can choose what’s right for your business.


Virtualization is a technology by which you can create virtual machines (VMs) of different hardware-software-based resources like operating systems, applications, storage, server, and applications with the help of a hypervisor. A system admin interacts with the hypervisor, manages these resources, and allocates the actual physical hardware to set up virtual environments in which these VMs work like their physical counterparts. In short, it helps you in delivering distinct virtual instances that are set up using the same parental resources but can be used independently.


1. Resource Allocation

Virtualization empowers you to have better control over your computational resources. Unlike the conventional setup, where all the resources are invested into a single end-user device, you can create multiple end-user instances using the host machine and efficiently allocate the resources between them.

2. Isolated Environment

By virtualization, you not only create distinct VMs that work independently, but it even provides an isolated environment for guest users. This way, you can safeguard your sensitive information and still allow your guests to stay connected.

3. End-User Experience

Virtualization provides automated load balancing, which offers several benefits like increased uptime availability, enhanced fault tolerance, and much more. Also, since all you need is to manage a single host machine, repairs and maintenance are comparatively easier to handle.

4. Unification

While virtualization allows you to disaggregate your resources for setting up separate virtual instances, you can even combine resources from several devices using cluster management software and create a unified host machine.

5. Hardware Optimization

Using hypervisor, you can preferentially allocate your hardware resources. This way, instead of purchasing hardware for different end-point devices (which often end up partially unused), you can optimize your hardware usage and maximize them to power various VMs.


  • Hardware Virtualization
  • Server virtualization
  • Storage Virtualization
  • Operating System Virtualization
  • Desktop Virtualization

Cloud Computing

Cloud computing is a methodology dealing with principles and approaches that enable the delivery of computational resources like operating systems, applications, storage, applications, etc., over a server. Simply speaking, the cloud provides an environment in which resources are virtually pooled together and accessed using the Internet. Unlike virtualization, where an admin is responsible for managing the hypervisor, the cloud setup involves using an Application Programmable Interface (API) for fulfilling user demands.


1. Resource Pooling

Similar to virtualization, resources in a cloud environment are pooled together. So, every time a user logs in, the cloud automatically creates a virtual instance of the resources and allows the user to use them.

2. Wide Network Access

It is one of the most significant advantages of the cloud. Resources pooled together can be accessed from anywhere, anytime via the Internet. This dramatically increases the accessibility of your resources and enables you to access them remotely.

3. Monitoring

The cloud has a tremendous security potential and can easily incorporate the latest measures for safeguarding your resources. You can also control who has access to which data (role-based access). Furthermore, every login in a cloud leaves a user footprint, which is recorded and can be traced back, if necessary.

4. Data Availability

Since the cloud is a pool of shared resources, it can accommodate resources from multiple sources, irrespective of their geographical locations. This way, you can copy your data into different resource centers, which can be easily retrieved if any center is damaged or destroyed.

5. Energy Consumption

Cloud computing from a cloud provider helps you lower your energy consumption and leave lesser carbon footprints. Since all the resources are hosted on the cloud, the need to set up an in-house server is eliminated and works with fewer energy requirements. Also, you can allow your workforce to work remotely, further reducing your energy consumption.


  • Public Cloud
  • Private Cloud
  • Hybrid Cloud

Virtualization Vs. Cloud Computing: General Differences

1. Setup

One of the significant differences between the cloud and virtualization is their respective independence. While virtualization can be brought in using a hypervisor, a cloud environment is not possible without virtualization.

2. Access

VMs cannot be accessed outside an organization unless hosted on a network. In comparison, the cloud is built and designed in such a manner that allows you to access them from anywhere, anytime.

3. Disaster Recovery

Although both allow you to access virtual copies of the physical hardware, the resources in a cloud setup can be housed at different geographical locations. This gave them better anti-disaster protection with wide recovery options. Whereas VMs are more susceptible to data loss in case of a disaster.

4. Capital Investment

You need to dedicate considerable resources and financial investment to availing virtualization solutions within your organization. The same is the case with in-house cloud servers, and the setup requires substantial investment. However, if you choose cloud computing from a cloud provider, the services are available as a pay-per-use model. You can also try them on a trial basis before making any serious financial commitment.

5. Scalability

In virtualization, scalability is limited and should be planned carefully according to your needs. If you are availing of a third-party cloud service, you give your organization an unlimited pool of virtual resources. Opting for cloud computing from a reputed service provider allows you to scale up/down as needed. They have a vast resource pool that you can tap into on-demand.


As you can see, both virtualization and cloud computing are quite different from each other. Thus, there is no right or wrong answer to which one is better for your business. It totally depends upon your needs and budget.

Are you still confused about which one to choose? Get in touch with our Solutions Consultant at 855-879-5481.


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