How does virtualization benefit cloud computing?

Virtualization significantly benefits cloud computing by enabling multiple virtual instances on a single physical server. This capability allows cloud service providers to efficiently utilize hardware resources, maximizing server use and reducing costs. Each virtual instance operates as an independent environment, capable of running its own operating system and applications. This flexibility is crucial in cloud environments where resource allocation can be dynamically adjusted based on demand.

By consolidating workloads onto fewer physical servers, companies can reduce energy consumption and physical space requirements, leading to more efficient and eco-friendly operations. Additionally, virtualization facilitates easier management, scaling, and deployment of applications, making it a cornerstone technology in cloud computing architecture.

The other options, while relevant in different aspects of IT and cloud services, do not directly relate to the foundational benefits that virtualization provides specifically in the context of maximizing server efficiency and resource utilization.