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In computing, virtualization refers to the act of creating a virtual (rather than actual) version of something, including virtual computer hardware platforms, storage devices, and computer network resources.
Hardware virtualization or platform virtualization refers to the creation of a virtual machine that acts like a real computer with an operating system. Software executed on these virtual machines is separated from the underlying hardware resources. For example, a computer that is running Microsoft Windows may host a virtual machine that looks like a computer with the Ubuntu Linux operating system; Ubuntu-based software can be run on the virtual machine.
Desktop virtualization is the concept of separating the logical desktop from the physical machine. One form of desktop virtualization, virtual desktop infrastructure (VDI), can be thought of as a more advanced form of hardware virtualization. Rather than interacting with a host computer directly via a keyboard, mouse, and monitor, the user interacts with the host computer using another desktop computer or a mobile device by means of a network connection, such as a LAN, Wireless LAN or even the Internet.
Nested virtualization refers to the ability of running a virtual machine within another, having this general concept extendable to an arbitrary depth. In other words, nested virtualization refers to running one or more hypervisors inside another hypervisor. Nature of a nested guest virtual machine does not need not be homogeneous with its host virtual machine; for example, application virtualization can be deployed within a virtual machine created by using hardware virtualization.
There are some other types of virtualization like software, memory, storage, data & network.