Software called hypervisors separate the physical resources from the virtual environments—the things that need those resources. Hypervisors can sit on top of an operating system (like on a laptop) or be installed directly onto hardware (like a server), which is how most enterprises virtualize. Hypervisors take your physical resources and divide them up so that virtual environments can use them.
Resources are partitioned as needed from the physical environment to the many virtual environments. Users interact with and run computations within the virtual environment (typically called a guest machine or virtual machine). The virtual machine functions as a single data file. And like any digital file, it can be moved from one computer to another, opened in either one, and be expected to work the same.
When the virtual environment is running and a user or program issues an instruction that requires additional resources from the physical environment, the hypervisor relays the request to the physical system and caches the changes—which all happens at close to native speed (particularly if the request is sent through an open source hypervisor based on KVM, the Kernel-based Virtual Machine).
