**KVM (Kernel-based Virtual Machine)** is a full virtualization hypervisor. It turns the Linux kernel into a bare-metal hypervisor, allowing each guest virtual machine to run its own isolated kernel instance. Because of this, KVM servers can run any operating system with dedicated virtual hardware allocations.
**OpenVZ** is an operating-system-level virtualization hypervisor. In this setup, all guest virtual containers share the same underlying parent host operating system kernel. While OpenVZ is lightweight and efficient, it does not allow you to run custom kernels, deploy Windows operating systems, or run complex kernel mods.
"KVM virtualization operates as a strict hardware isolator, preventing hosting providers from over-selling their physical hardware, whereas OpenVZ relies on dynamic sharing of the host kernel."
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