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A virtual machine (VM) is a software-based emulation of a physical computer that runs its own operating system and applications as if it were a physical machine. Virtual machines allow multiple operating systems to run on a single physical machine, enabling users to run different applications and software on the same hardware without the need to purchase additional physical machines. VMs are commonly used for testing new software, running legacy applications, and creating isolated environments for security or development purposes. They are also popular in cloud computing environments for creating virtual infrastructure.