Abstract-System virtualization is an antique art that will continue as long as applications need isolation and performance independence. Virtualization provides many benefits and greater efficiency in CPU utilization, greener IT with less power consumption, better management through central environmental control, more availability, reduced project timelines by eliminating hardware procurement, improved disaster recovery capability, more central control of the desktop, and improved outsourcing services. In this paper we will deliver new and enhanced IT services in less time and with greater agility. The goal of providing rapid near real-time response to customer requirements is in part being achieved by taking advantage of virtualization. Virtualization provides many benefits, including improved physical resource utilization, improved hardware efficiency, and reduced power and cooling expenses. However, it introduces another set of systems (virtual machines) that have to be controlled, provisioned, managed, updated, patched, and retired. This paper is organized into the following areas-An introduction to virtualization and its benefits, the Challenges of Virtualization techniques, an overview of the hardware virtualization technique, an overview of the software virtualization technique. The paper also proposes an effective and flexible distributed scheme with three phases, opposing to its predecessors. Our scheme achieves reducing the workload of a data center and continual service improvement.