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A virtual machine is a software-based emulation of a physical computer that enables multiple operating systems to run on a single physical machine. Each virtual machine functions as an independent computer with its own virtualized hardware components, including CPU, memory, storage, and network interface. Virtual machines are commonly used for testing software, running multiple operating systems on a single computer, and consolidating server workloads. They provide flexibility, scalability, and cost savings by allowing users to run multiple virtual machines on a single physical server.