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In the VM world, the operating system actually running on your computer is called the host and any operating systems running inside VMs are called guests. Whenever you want to use the operating system, you can open the virtual machine program and use it in a window on your current desktop. It will install and run just as it would on a real, physical machine.
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The VM runs as a process in a window on your current operating system. You can boot an operating system installer disc (or live CD) inside the virtual machine, and the operating system will be "tricked" into thinking it's running on a real computer. A virtual machine app creates a virtualized environment-called, simply enough, a virtual machine-that behaves like a separate computer system, complete with virtual hardware devices.
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