This is one of many hardware virtualization techniques that allows multiple "guest" operating systems to run concurrently on a "host" computer. Also known as virtual machine manager (VMM).

Hypervisor, also called virtual machine manager (VMM), is one of many hardware virtualization techniques allowing multiple operating systems, termed guests, to run concurrently on a host computer. It is so named because it is conceptually one level higher than a supervisory program. The hypervisor presents to the guest operating systems a virtual operating platform and manages the execution of the guest operating systems. Multiple instances of a variety of operating systems may share the virtualized hardware resources. Hypervisors are very commonly installed on server hardware, with the function of running guest operating systems, that themselves act as servers.

Source: wikipedia

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