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A virtual machine (VM) is a software-based emulation of a physical computer that runs on a host machine. It allows users to run multiple operating systems on a single physical machine, providing flexibility and cost savings. VMs are used for a variety of purposes, including testing different operating systems, running legacy software, and isolating applications for security purposes. They are commonly used in cloud computing environments to provide virtualized resources to users. VMs are managed using virtualization software, such as VMware, VirtualBox, or Hyper-V.