The technology commonly used for creating and managing virtual machines is hypervisor software. Hypervisors allow multiple operating systems to run concurrently on a single physical machine by abstracting hardware resources for each virtual environment. They can be categorized into two types: Type 1 hypervisors, which run directly on the hardware, and Type 2 hypervisors, which operate on an existing operating system. This virtualization technology enhances resource utilization, facilitates cost savings, and provides isolated environments for development, testing, and deployment, making it essential in cloud computing and enterprise IT infrastructure.