| Base of Difference | Cloud Computing | Virtualization |
| Setup | When we say about setup of Cloud computing it is very tedious task. | On the other hand setup of virtual environment is very simple. |
| Service Type | Example of Service type here is IaaS | Example of service type here is SaaS |
| Types | Example of cloud computing is Private Cloud and Public Cloud. | Example of virtualization is Hardware virtualization and Application virtualization. |
| Disaster Recovery | This will not depend upon one machine | Single machine failure can bring done multiple virtual machines. |
| Dependency | Here multiple user can access the network by using the same link. | Here we can install multiple OS on a single server/computer. |
| Accessibility | When we say about accessibility it can be accesses from all over the world(Internet-based cloud). | When we say about virtualization we need proper permission to access from outside the network. |
| Dedicated Hardware | When we say about the hardware we need multiple hardware to create a cloud computing. | We need dedicated hardware for multiple virtual machines. |
| Integration | When we say about Integration in cloud this will allows future expansion of users, application etc. | Virtualization integration allows the expansion of new machines within the same infrastructure. |
| Scalability | We can extend cloud as much as we want. | On the other hand Virtual machine configuration limits its scalability. |
| Flexibility | Cloud is very flexible for user access and a user can access its cloud from any location with internet.(Also depends upon permission). | On the other hand a proper autentication is required before accessing the virtual machines. |
| Depended | Without virtualization cloud computing canot exist. | Virtualization does not depend upon the cloud computing environment |
| Best for | Cloud computing is very good for selling your serviceor software to external users. | On the other hand Virtualization is best for setting up Data Center within the company network or infrastructure. |
| Capacity | Storage capacity is limitless in the Cloud network | Virtualization its depend upon Physical server capacity. |