What does 'virtualization' in IT entail?

Virtualization in IT refers to the creation of a virtual version of physical hardware or software resources. This process allows multiple virtual systems to run on a single physical machine, thereby optimizing resource usage and improving efficiency. By using virtualization, organizations can consolidate physical servers, reduce hardware costs, and enable easier management of resources. Additionally, virtualization supports the deployment of various operating systems and applications on the same hardware, enhancing flexibility and scalability.

The other options describe different aspects of IT but do not capture the essence of what virtualization entails. Securing data on physical servers, designing user interfaces, and installing cloud-based solutions are all critical components of managing information technology, but they do not directly relate to the concept of creating virtual instances that embody the core definition of virtualization.