The document discusses OS-level virtualization, where a virtualization layer is inserted into the OS to partition hardware resources for multiple VMs. This allows each VM to run applications in its own virtual environment. Key advantages of OS-level virtualization include efficient hardware use, high availability, easy recovery and setup, and easier cloud migration. However, all VMs must use the same OS family and challenges exist in supporting different OS preferences. The document also examines approaches to implementing OS-level virtualization through shared kernels and redirected access requests between VMs and physical resources.