Software & Operating Systems

Hypervisor

Also known as: virtual machine monitor, VMM, virtualization platform

A hypervisor is software that creates and runs virtual machines, dividing one physical computer's processor, memory, and storage among several isolated virtual computers. 'Type 1' hypervisors, such as VMware ESXi, Microsoft Hyper-V, and KVM, run directly on server hardware, while 'Type 2' hypervisors, such as VirtualBox and Parallels, run as apps on a desktop.

Hypervisors underpin cloud computing. While virtualization saves money and space, a hypervisor failure or compromise can affect every virtual machine on that server.

Hypervisor, explained at three levels

At home

A hypervisor is like a landlord who divides a big house into separate apartments. Each tenant, a virtual machine, has their own space but shares the building.

At work

Hypervisors let businesses run many servers on fewer physical machines, saving hardware, power, and space.

Real-world examples

At home

Carlos wanted to try Linux without changing his PC. He installed VirtualBox and ran Ubuntu in a window alongside Windows.

At work

Fatima manages IT for a Halifax manufacturing company. After VMware's licence costs rose sharply, she migrated the company's 20 virtual servers to Hyper-V.

How it compares

featureType 1 hypervisorType 2 hypervisor
Runs onDirectly on hardwareInside an operating system
ExamplesESXi, Hyper-V, KVMVirtualBox, Parallels, VMware Workstation
PerformanceHigherLower
Typical useServers, data centresDesktops, testing

Type 1 runs servers. Type 2 runs VMs on your desktop.

For analysts

When virtualization licences come up for renewal, I'd run a structured options analysis. The VMware changes showed how quickly a stable cost can become a budget crisis.

History & origin

IBM developed virtualization for mainframes in the 1960s with systems such as CP-40 and CP-67, and Gerald Popek and Robert Goldberg formalized requirements for virtualization in 1974. VMware, founded in 1998, brought virtualization to ordinary PCs and later servers, transforming data centres. Open-source Xen in 2003, Intel and AMD hardware virtualization features in 2005 and 2006, KVM in the Linux kernel in 2007, and Microsoft Hyper-V in 2008 followed. Amazon Web Services and other clouds built on hypervisors. After Broadcom bought VMware in November 2023, licensing changes and price increases pushed many organizations to consider alternatives such as Proxmox, Nutanix, and Hyper-V. In my view, the hypervisor is the invisible foundation of the cloud.