What's the difference between cloud and virtualization?

Updated December 18, 2024•6-minute read
Copy URL

Jump to section

OverviewComparisonHow cloud and virtualization interactSecurity considerationsEmerging trendsWhy choose Red Hat?

It’s easy to confuse virtualization andcloud, particularly because they both revolve around creating useful environments from abstract resources. However, virtualization is a technology that lets you create multiple simulated environments or dedicated resources from a single, physical hardware system, and clouds are IT environments that abstract and share scalable resources across a network. To put it simply, virtualization is a technology, whereas cloud is an environment.

Learn more about the state of virtualization

 

A practical comparison

Virtualization can make 1 resource act like many, while cloud computing lets different departments (throughprivate cloud) or companies (throughpublic cloud) access a single pool of automatically provisioned resources.

 

Virtualization

Virtualization is technology that lets you create multiple simulated environments or dedicated resources from a single, physical hardware system. Software called ahypervisor connects directly to that hardware and allows you to separate 1 system into distinct, secure environments known asvirtual machines (VMs). These VMs rely on the hypervisor’s ability to separate the machine’s resources from the hardware and distribute them appropriately.

Cloud computing

Cloud computing is a set of principles and approaches to deliver compute, network, and storage infrastructure resources as well as services, platforms, and applications to users on demand across any network. These infrastructure resources, services, and applications are sourced from clouds—which are pools of virtual resources orchestrated by management and automation software—so they can be accessed by users on demand through self-service portals supported by automatic scaling and dynamic resource allocation.

 VirtualizationCloud
DefinitionTechnologyMethodology
PurposeCreate multiple simulated environments from 1 physical hardware systemPool and automate virtual resources for on-demand use
UseDeliver packaged resources to specific users for a specific purposeDeliver variable resources to groups of users for various purposes
ConfigurationImage-basedTemplate-based
LifespanYears (long-term)Hours to months (short-term)
CostHigh capital expenditures (CAPEX), low operating expenses (OPEX)Private cloud: High CAPEX, low OPEX
Public cloud: Low CAPEX, high OPEX
ScalabilityScale upScale out
WorkloadStatefulStateless
TenancySingle tenantMultiple tenants

 

Red Hat OpenStack Services on OpenShift

How cloud infrastructure and virtualization interact

Clouds are usually created to enable cloud computing, which is the act of running workloads within that system.

Cloud infrastructure can include a variety of bare-metal, virtualization, or container software that can be used to abstract and share scalable resources across a network to create a cloud. At the base of cloud computing is a stable operating system (like Linux®). This is the layer that gives users independence across public, private, and hybrid environments.

With virtualization, the hypervisor sits on top of physical hardware and abstracts the machine's resources, which are then made available to virtual machines. These resources can be raw processing power, storage, or cloud-based applications containing all the runtime code and resources required to deploy it.

If the process stops here, it's not cloud—it's just virtualization. 

Virtual resources in clouds

Virtual resources need to be allocated into centralized pools before they're called clouds. Adding a layer of management software gives you administrative control over the infrastructure, platforms, applications, and data that will be used in the cloud. An automation layer replaces or reduces human interaction with repeatable instructions and processes, which provide the self-service component of the cloud.

You’ve created a cloud if you’ve set up an IT system that:

  • Can be accessed by other computers through a network.
  • Contains a repository of IT resources.
  • Can be provisioned and scaled quickly.

Benefits of clouds vs. virtualization

Clouds deliver the added benefits of self-service access, automated infrastructure scaling, and dynamic resource pools, which most clearly distinguish cloud computing from traditional virtualization.

Virtualization has its own benefits, such as server consolidation and improved hardware utilization, which reduce the need for power, space, and cooling in a datacenter. VMs are also isolated environments, so they're a good option for testing new applications or setting up a production environment.

Find out how Reist uses containers and VMs together

Security considerations in virtualization and cloud computing

Cloud providers secure the infrastructure and services they offer by protecting physical and virtual systems, implementing data encryption, and adhering to industry compliance standards like the General Data Protection Regulation (GDPR) or Health Insurance Portability and Accountability Act (HIPAA). They must provide tools for identity and access management, threat detection, secure application deployment, and disaster recovery.

Cloud providers monitor for threats and maintain secure datacenters with strict physical controls while their customers are responsible for configuring services securely to protect their data. This collaboration is known as the shared responsibility model and ensures a strong security foundation while enabling customers to manage their workloads effectively.

Security in virtualization involves protecting the hypervisor, VMs, networks, storage, and applications through a combination of isolation, access control, and monitoring. Isolation prevents compromised systems from affecting others, while hypervisor security is maintained through updates and restricted access.

Virtualized networks are protected with firewalls, segmentation, and encryption. Storage is secured with encryption, access controls, and backups.Identity and access management (IAM) measures, such asrole-based access control (RBAC) and multi-factor authentication (MFA), prevent unauthorized access, while continuous monitoring detects potential threats. Regular patching, compliance with industry regulations, and disaster recovery plans further ensure that virtualized environments remain secure and resilient.

Find out more about securing hybrid cloud environments

Compliance in cloud security

Compliance with regulations and standards is a critical security consideration for businesses using cloud services because it ensures that sensitive data is protected, risks are minimized, and legal obligations are met. Many industries, such as healthcare, finance, and government, are governed by strict data protection regulations like GDPR, HIPAA, or Payment Card Industry Data Security Standard (PCI DSS). Businesses using cloud services must ensure that their chosen cloud provider complies with these requirements to avoid penalties, legal consequences, and reputational damage.

While cloud providers offer compliance certifications and adhere to standards to demonstrate their commitment to secure practices, their customers must configure their cloud environments to manage access controls and ensure their data-handling processes align with the necessary regulations. 

Emerging trends in virtualization and cloud computing

As the needs for and applications of virtualization and cloud computing evolve, many new trends emerge are changing how we use the technology and environment.

5G

5G network adoption increases opportunities for virtualization because 5G’s high bandwidth and low latency enable virtualized network functions (VNFs) and edge computing at scale. The integration of 5G networks and virtualization can drive advancements in smart cities, industrial automation, and immersive experiences.

AI/ML and quantum computing

As virtualization further integrates withartificial intelligence (AI) andmachine learning (ML), AI-driven analytics can enhance resource allocation, security, and preventative maintenance in virtualized environments while ML algorithms automate routine tasks and fine-tune workloads to ensure optimal performance and operational efficiency.

AI-driven cloud management optimizes resource allocation, predicts failures, and streamlines workload management, improving performance and reliability while lowering operational costs. As cloud environments grow more complex, they become difficult to maintain if humans are needed to manually provision and manage services. For these reasons, AI and its automated decision-making are becoming essential for building scalable and resilient cloud infrastructures.

Quantum cloud computing promises exponential growth in processing power, enabling faster problem-solving that could revolutionize innovation and scientific research.

Serverless

Serverless computing is a model for application development in which developers create application code without provisioning or managing servers or back-end infrastructure. Despite its name, serverless computing simply means the servers are "invisible" to developers, who focus on front-end application code without interacting with or managing servers. Those servers are instead managed by a cloud service provider.

Sustainability

Green computing is a trend that will likely expand its profile as the infrastructure, electricity, and cooling required for cloud computing continues to increase environmental impact. 5G, serverless, quantum computing, and AI all increase the demand for energy and create more waste.

Green computing emphasizes increasing hardware and software efficiency. It encompasses e-waste reduction as aging hardware produces immense amounts of waste each year while shortages of rare earth minerals drive demand for better recycling. 

Find out more about AI models in the hybrid cloud

Why choose Red Hat for virtualization?

YouTube video: Is OpenShift Virtualization right for your VMs? Video duration: 1:57


Migrate your VMs and maintain your momentum

Red Hat’s trusted products andpartner ecosystem deliver comprehensivevirtualization solutions. Migrate your virtual machines now to Red Hat® OpenShift® Virtualization, a modern application platform—based on KVM and KubeVirt—that integrates virtual and containerized workloads to provide flexibility without added complexity. Or, for a dedicated virtualization solution, explore Red Hat OpenShift Virtualization Engine, a streamlined, cost-effective offering to deploy, manage, and scale VMs exclusively. The included migration toolkit for virtualization provides the tools you need to start your migration in a few simple steps.

Explore Red Hat OpenShift Virtualization as a VMware admin

Automate your migration

Use automation to accelerate delivery with Red Hat Ansible® Automation Platform—from migration at scale to Day 2 operations and remediation. With this flexible approach, you can automate tasks to improve speed and efficiency of IT operations.

Learn how to automate virtual infrastructure management

Manage and modernize at your own pace

Monitor the security and performance of your VMs from a single console with Red Hat Advanced Cluster Management. With additional support options and partner integrations, you can rely on Red Hat to keep your virtual infrastructure running smoothly throughout the hybrid cloud—and help you modernize when you’re ready. 

Explore our virtualization solution

Migrate and manage virtual infrastructure

Companies are reassessing their virtualization platforms to ensure they have the right combination of consistency and support. Download to read more.

15 reasons to adopt Red Hat OpenShift Virtualization

Discover how Red Hat OpenShift Virtualization can unify and simplify your IT operations, using one platform for both virtual machines and containers.

Keep reading

What is hybrid cloud?

Find out more about hybrid cloud, a combination of computing environments that share information and run a uniform series of applications.

Why are financial services slow to adopt the cloud?

Find out why the financial services industry is slow to adopt the cloud, and why it's still a good idea to get started.

What is the role of the cloud in embedded finance?

Embedded finance is a significant opportunity for almost every business in the financial services sector. Find out how cloud platforms can help you achieve success in embedded finance.

Hybrid cloud resources

Related articles