There are hardware, software and may be hybrid type of virtualization. The basic aim is more effective utilization of computer resources by running multiple operating systems, multiple instances of the same operating system or a combination of these two.
The key point is that multiple operating system instances are active simultaneously. the services offered by the different servers running on the different operating systems will have to accessed remotely. If the services are only accessible locally, then it is no better than a multi-boot system. So we need client machines, either thick or thin. Been down that road before.
There is no free lunch. And client-server is not inherently better than tightly integrated systems or vice-versa. If it were, only one would have survived.