VMware vSphere uses virtualization to transform datacenters into scalable, aggregated computing infrastructures. A virtual infrastructure presents IT organizations with increased flexibility in how they deliver their services. A virtual infrastructure also serves as the foundation for cloud computing.

Cloud computing is an approach to computing that builds on virtualization's efficient pooling of resources to create an on-demand, elastic, self-managing virtual infrastructure that can be allocated dynamically as a service. Virtualization uncouples applications and information from the complexity of the underlying hardware infrastructure.

Virtualization, in addition to being the underlying technology for cloud computing, enables organizations of all sizes to make improvements in the areas of flexibility and cost containment. For example, with server consolidation, one physical server takes on the work of many servers by incorporating multiple servers as virtual machines. Also, ease of management and effective resource use are products of virtualizing the datacenter. When you virtualize your datacenter, management of the infrastructure becomes easier and you use your available infrastructure resources more effectively. Virtualization enables you to create a dynamic and flexible datacenter, and can reduce operating expenses through automation while also reducing planned and unplanned downtime.