1. Virtualization: Using hardware resources across virtual hosts making the hardware utilization better across a data center. Also provide quick turnaround times to build new hosts for the development and test infrastructures.
2. Grid Computing: Use low cost hardware resources to accomplish production tasks with high redundancy and performance.
"1" is actually partitioning a physical host into multiple virtual hosts and use the physical resources more effectively where as "2" is to combine multiple smaller physical hosts behave as if it were a big single host.
These different solutions are best utilized to solve different problems. All these multiple technology options when used in a correct manner surely reduce the cost and improve the utilization of the data center resources.
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