Virtualization is the creation of virtual versions of hardware resources like servers, storage, and networks. It allows one physical resource to function as multiple logical resources. Virtualization was first developed in the 1960s for mainframe computers and was later adapted for x86 architecture by VMware. Common types of virtualization include operating system virtualization, network virtualization, and storage virtualization. Virtualization provides benefits like consolidation, testing, security, and isolation. There are many open-source and proprietary virtualization software options available for Linux.