Virtualization involves the creation of a virtual version of a device, such as a server, storage device, network or an operating device. It is enabling data centers to increase the efficiency and availability for managing workloads. Leading corporate organisations such as Microsoft are improving virtualization with specific Microsoft virtualization solutions, these solutions are beyond the basic virtualization capabilities such as consolidating sever hardware. Many organizations are benefitting from such virtualization solutions for increasing their operational efficiencies. There are different types of virtualization such as storage virtualization, server virtualization, operating system virtualization, network virtualization and application virtualization. Server virtualization involves dividing a physical server into smaller virtual servers. Storage virtualization involves combining multiple network storage devices into a single storage unit. Network virtualization uses network resources through the logical segmentation of a single physical network. Virtualization has plenty of benefits; it is used to run multiple operating systems and applications on a single server. Moreover, it fastens and simplifies IT management, maintenance and the deployment of new applications. Server virtualization also has many benefits; it elevates the utilization of the server up to 80 percent. While running multiple operating systems and multiplications on a same physical server virtualization increases efficiency. Server consolidation enables running multiple virtual machines or VMs on a single physical server. During server failure VMs are automatically restarted or continued on another machine without data loss. During disasters or system repairs VMs can be shifted from one server to another in a different location. It also increases IT productivity.