What is network virtualization?

Network virtualization is the transformation of a network that was once hardware-dependent into a network that is software-based. Like all forms of IT virtualization, the basic goal of network virtualization is to introduce a layer of abstraction between physical hardware and the applications and services that use that hardware.

More specifically, network virtualization allows network functions, hardware resources, and software resources to be delivered independent of hardware—as a virtual network. It can be used to consolidate many physical networks, subdivide one such network, or connect virtual machines (VMs) together.

With network virtualization, digital service providers can optimize their server resources (i.e. fewer idle servers), allow them to use standard servers for functions that once required expensive proprietary hardware, and generally improve the speed, flexibility, and reliability of their networks.