What is a vmware virtual machine?
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The diagram below shows how the physical resources are shared with the virtual machines. The resources in the virtual machine are software based resources which use to the physical resources. The virtual Disk, Network, CPU, and Memory, other resources not illustrated here make up the virtual machine. Within the virtual machine however these resources have properties similar to their physical hardware and you can configure them in a similar way, effectively you would not know if you are on a physical server or virtual machine.
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