The technology that allows for the creation and management of virtual machines is known as virtualization technology. This enables one physical server to run multiple operating systems and applications simultaneously as isolated virtual instances. Virtualization improves resource utilization, reduces physical hardware costs, and enhances disaster recovery strategies. Tools such as VMware and Hyper-V allow administrators to easily create, backup, and manage these virtual environments. This technology is crucial in cloud computing, enabling flexible, scalable, and efficient resources for businesses.