Which statement best describes the benefit of virtualization technology?

Virtualization technology primarily allows multiple virtual machines (VMs) to run on a single physical server, which is its most significant benefit. This capability maximizes the use of hardware resources by enabling different operating systems and applications to run independently on the same physical hardware. By consolidating workloads, organizations can achieve better resource utilization, improve efficiency, and reduce costs associated with hardware, as fewer physical servers are required to support the same number of applications.

The ability to create separate VMs also enhances flexibility, scalability, and isolation for development and testing environments, allowing businesses to quickly deploy and manage services. This function does not replace all hardware, as physical servers still exist at the core of the virtualized environment. Additionally, virtualization is not limited to small enterprises; large organizations also greatly benefit from its capabilities. Lastly, while virtualization can reduce the number of physical servers needed, it does not eliminate the need for servers altogether, as the underlying physical infrastructure remains essential to host the virtual machines.