Virtualization allows for more efficient use of server resources by running multiple virtual machines on a single physical server. This is done through the use of a hypervisor which creates isolated virtual machines, each with their own operating system and applications. Networking in virtualized environments is enabled through software-defined networking which decouples the network control and forwarding functions from the underlying hardware, allowing for centralized programmatic control of network resources. Neutron is OpenStack's networking component that provides software-defined networking capabilities like network provisioning and virtual port management.