While generating considerable cost savings, virtualization may boost IT agility, flexibility, or scalability. Advantages of virtualization include higher workload mobility, improved resource availability or performance, automated processes, easier management, and lower ownership and operating costs for IT. The ability to create an intelligent abstraction layer that conceals the complexity of underlying software or hardware makes virtualization a crucial component of cloud computing. This article covered virtualization, technological architecture, as well as Virtual Machine Monitoring (VMM). In addition, there have been explored about virtualization, its benefits, how it applies to cloud computing, and any advantages or drawbacks that exist between physical and virtual servers. This paper emphasizes the significance of virtualization technology in streamlining IT processes and enabling IT teams to react quickly to shifting business demands. The main objective of this paper learns more about the importance of virtualization technology in the cloud computing system. In the Future, this paper will aid people to understand the utilization of virtualization technology and its advantage.