- We all know how this Cloud Computing model works. A Cloud vendor will have all the physical resources like servers, storage devices, network devices and also applications/software that run in their environment and these physical resources are rented to the customers as a pay per use business model.
- It would be an overhead for the cloud vendors if they start renting
out new individual physical resources to every customer. Because ideally
never ever a physical resource is consumed completely. This is why
virtualization would be a cool approach for efficient utilization of the
silos(A silo is a storage system for bulk components). The cloud vendor
can virtualize his single big servers to provide smaller spec servers
to multiple customers.
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