Hosting Types

What is Hypervisor?

Definition

A hypervisor is a software layer that creates and runs virtual machines by abstracting and isolating physical hardware resources for multiple operating systems.

A hypervisor, also called a virtual machine monitor (VMM), is a software layer that sits between the physical hardware and the operating systems running on top of it. Its primary job is to partition the host machine's resources, such as CPU, memory, and storage, and allocate them to one or more isolated virtual machines (VMs). Each VM runs its own guest operating system, unaware that it is sharing hardware with other VMs.

Hypervisors fall into two types. Type 1 (bare-metal) hypervisors run directly on the host hardware without an underlying operating system. Examples include VMware ESXi, Microsoft Hyper-V, and KVM (which is part of the Linux kernel). Type 2 (hosted) hypervisors run as a software application on top of an existing operating system. Examples include Oracle VirtualBox and VMware Workstation. Type 1 hypervisors are the standard in data centers and cloud infrastructure because they offer lower overhead, higher performance, and better security isolation.

In the wider hosting stack, the hypervisor is the foundation of virtualization. It enables cloud providers to run dozens or hundreds of VMs on a single physical server, dramatically improving hardware utilization and reducing costs. The hypervisor also enforces resource limits and handles VM migration, snapshots, and live backups. Without the hypervisor, modern Infrastructure as a Service (IaaS) platforms such as AWS EC2 and Google Compute Engine would not exist.

Key facts

  • Hypervisors abstract physical hardware to run multiple guest operating systems concurrently.
  • Type 1 (bare-metal) hypervisors run directly on hardware; Type 2 run on a host OS.
  • Common Type 1 hypervisors include VMware ESXi, Microsoft Hyper-V, and KVM.
  • Hypervisors enforce resource isolation and security boundaries between VMs.
  • They enable live migration, snapshots, and high availability in production data centers.

How it works in practice

A cloud provider like AWS runs thousands of physical servers, each with a Type 1 hypervisor (a customized version of Xen). When a customer launches an EC2 instance, the hypervisor carves out a slice of CPU cores, RAM, and disk I/O, then boots a guest OS inside a VM. The customer can reboot, resize, or snapshot the instance without affecting other VMs on the same host.

Related terms

Virtual Machine (VM) KVM (Kernel-based Virtual Machine) Xen VMware ESXi Container Infrastructure as a Service (IaaS)

References

More in Hosting Types

Bandwidth

Bandwidth is the maximum rate of data transfer across a network connection, measured in bits per second, and in hosting plans often refers to the total monthly data transfer allowance.

Bare-Metal Cloud

Bare-metal cloud is a service model that provisions dedicated physical servers on demand via API, giving users direct access to hardware without a hypervisor.

Burstable Billing

Burstable billing (95th percentile billing) charges customers based on the 95th percentile of their traffic, sampled every 5 minutes over a billing month, discarding the top 5% of data points.

Cloud Bursting

Cloud bursting is a hybrid cloud deployment that automatically scales an application from a private cloud to a public cloud during demand spikes.

Cloud Hosting

Cloud hosting provides on-demand access to pooled compute, storage, and networking resources that can be scaled up or down as needed, typically billed per use.

Colocation

Colocation is a service where a provider rents physical space, power, cooling, and network connectivity in a data centre for customer-owned servers and hardware.

Dedicated Server

A dedicated server is a physical machine leased exclusively to one customer, offering full hardware control and no virtualization overhead for high-performance workloads.

Managed Hosting

Managed hosting is a service where the provider handles server administration, including OS maintenance, security updates, backups, and application support, allowing clients to focus on their core business.

Overselling

Overselling is a hosting practice where providers allocate more resources (bandwidth, disk, CPU) than physically available, assuming customers won't all use their maximum simultaneously.

Reseller Hosting

A business model where one entity purchases web hosting capacity wholesale from a provider and resells it to end customers under its own brand.

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