What allows for the flexible resource allocation in cloud computing?

Virtualization technology is crucial for enabling flexible resource allocation in cloud computing. It allows multiple virtual instances of servers, storage, and applications to run on a single physical hardware infrastructure, effectively maximizing the utilization of resources. By abstracting the underlying hardware, virtualization allows for dynamic scaling; resources can be allocated or reallocated quickly depending on demand. This means that if one application requires more resources, the virtualization layer can shift resources from another, less demanding application without impacting the overall system performance.

In cloud environments, this capability leads to significant efficiencies. Users can rapidly deploy or decommission resources as needed, making it easier to handle variable workloads and optimize costs. Overall, virtualization acts as the backbone of cloud computing's operational model, facilitating an agile and responsive IT environment.