The difference is that virtualization is a specific technique for virtualizing hardware resources, while cloud computing is the delivery of dynamically scalable and often virtualized resources over the Internet, similar to server clusters. Virtualization and cloud computing may sound similar, but each has a broader definition and can be applied to many different types of systems.

Cloud computing and virtualization are fundamentally different. Virtualization is the process of creating multiple virtual environments on a single server. It does this by using virtualization software, which makes it possible to run multiple operating systems on the same server at the same time.