A hypervisor is a critical component in virtualization technology, allowing multiple operating systems to run concurrently on a single hardware platform. It acts as an intermediary between the computer hardware and the virtual machines (VMs), managing their resources such as CPU, memory, and storage. Hypervisors come in two types: Type 1, which runs directly on the hardware, and Type 2, which operates within an existing operating system. By enabling virtualization, hypervisors enhance resource utilization, scalability, and flexibility in IT environments.