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Storage Virtualization refers to the process of completely abstracting logical storage from physical storage. The physical storage resources are agregated into storage pools, from which the logical storage is created. With storage virtualization, multiple independent storage devices, that may be scattered over a network, appear to be a single monolithic storage device, which can be managed centrally. Storage Virtualization is commonly used in SANs.
Storage virtualization is the pooling of physical storage from multiple storage devices into what appears to be a single storage device — or pool of available storage capacity — that is managed from a central console.