Traditionally, the relationship between hardware and operating system has been strictly one-to-one. That is, a single piece of hardware, whether notebook, desktop PC or server, can only run one operating system (such as Microsoft Windows or Linux) at a time.
Virtualisation breaks this one-to-one bond and allows multiple operating systems to run concurrently, yet independently, on a single computer by virtualising the physical computer's resources. The operating systems and programs running in each virtual machine each believe they are on a separate physical computer and operate just as they would in that environment.