This document discusses the background and advantages of virtualization. It describes how IBM originally solved the problem of running multiple operating systems on the same machine by adding a virtual memory monitor or hypervisor. The hypervisor sits between operating systems and hardware, giving each OS the illusion of full hardware control while actually multiplexing hardware access. This allows server consolidation by running multiple OSes on fewer physical servers. The document then discusses challenges of virtualizing privileged operations, system calls, and virtual memory that require interception and emulation by the hypervisor.