While virtualization and cloud computing might share a common bond, there is a difference between them and it’s important to understand what that difference is.
One common misconception I routinely notice when talking with people 
about technology is the idea that virtualization and cloud computing are
 the same thing. It’s not impossible to see where this conclusion stems 
from, given the influx of overwhelming information concerning both 
concepts. While these technologies might share a common bond of 
maximizing computing resources, there is a difference between them and 
it’s important to understand what that difference is. 
Virtualization in a nutshell
To put it simply, virtualization is the 
process of simulating “virtual” versions of infrastructure resources, 
such as computing environments, operating systems, storage devices or 
network components, as opposed to creating actual or physical versions 
of those same resources. For example, you have a physical server (the 
“host”) that controls all of its physical resources (the operating 
system, memory, storage, etc.) – those resources can be allocated to 
virtual machines (“VM”s) that run in containers provided by that host. 
Virtualization enables multiple instances of infrastructure resources to
 run on the same hardware, with access to those resources being 
controlled by a hypervisor (I’ll get to that in a second.) Take a look 
at the picture below.
 A hypervisor, also referred to as a virtual machine manager (“VMM”), is 
the software layer that controls access to the host’s physical hardware,
 and creates and runs the VMs. There are two types of hypervisors: bare 
metal/native or hosted. In a bare metal instance, the hypervisor runs 
directly on the host’s hardware and allows running multiple operating 
systems on the same physical hardware. Hosted hypervisors run on top of 
the host’s operating system, and additional operating system 
environments are run within the host’s OS. In a nutshell, bare metal 
hypervisors run directly on hardware while hosted hypervisors run on top
 of an operating system such as Windows or Linux.
That’s great…but where does the cloud come in?
Cloud computing is the delivery of shared 
computing resources, software or data as a service via the Internet, as 
opposed to virtualization, which is part of a physical infrastructure. 
For users of either technology, it may appear that the two are one in 
the same, as the applications or data they’re accessing are pulled from a
 virtual machine somewhere unconnected to a physical host. That’s partly
 where some of the confusion happens.
Cloud computing is built on top of a 
virtualized infrastructure, consisting of compute, storage and network 
components. There are a variety of different service models that 
represent cloud computing, such as SaaS, IaaS, and PaaS (I’ll cover 
these in a later post), and there are many key characteristics that 
define the “cloud”, such as agility, scalability, automation, and 
on-demand service delivery.
So there you have it
By itself, virtualization can reduce complexity for end users while 
allowing an organization’s IT resources to be utilized more effectively.
 But cloud computing takes the use of those resources to the next level 
by delivering access to those components on-demand as a service, further
 reducing complexity, cost and burden. Essentially, virtualization is a 
logical action for businesses to take when considering the adoption of a
 cloud computing strategy.

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