Virtualized Networks Based on System Virtualization

System virtualization is used to virtualize physical hardware, called Real Machine (RM) in this context. A Virtual Machine Monitor (VMM) runs on top of the RM and virtualizes its resources by providing Virtual Machines (VMs). A VM consists of virtual CPUs, virtual memory, virtual hard disks, virtual network interface cards, etc. A VM is a perfect recreation of a RM, therefore an Operating System (OS) can be installed within it (called Guest OS). Several VMs can be run in parallel on the same RM without being aware of each other.