The term that describes the virtualization of physical devices in a network is network virtualization. This technology allows multiple virtual networks to operate on top of a single physical network infrastructure. By abstracting hardware resources, network virtualization enables better resource allocation, improved efficiency, and flexible management. Organizations can create isolated networks for different applications or departments without needing separate physical hardware. This approach reduces costs and simplifies network administration while enhancing scalability and resource utilization, ultimately leading to more agile and responsive IT environments.