All cloud computing services are built on a Cloud Hypervisor, which enables virtual machines (VMs) and containers to run concurrently on a single computer whether they are owned by the same customer or separate clients of the cloud service. Similarly to how hypervisors allow for a higher level of machine utilisation, this Multitenancy is largely responsible for the economics of cloud computing products.
Due to the mobility provided by hypervisors as well as the virtualization software they support, workloads can be moved easily between cloud services as well as on servers. This enables enterprises to swiftly switch from on-premises servers to cloud providers or add more instances of apps that are already running in the cloud when demand spikes.
Cloud hypervisors help cloud providers reduce the amount of energy and space needed to run and cool the massive number of computers under their management.