The technology that allows for the virtualization of servers and operating systems is known as hypervisor technology. A hypervisor sits between the hardware and the operating system, allowing multiple virtual machines (VMs) to run on a single physical server. This virtualization enables better resource utilization, isolation of applications, and quicker deployment of services. There are two types of hypervisors: Type 1, which runs directly on the hardware, and Type 2, which runs on a host operating system. Both types benefit data centers by improving scalability and flexibility.