With Server Virtualization, many small physical servers are replaced by one larger physical server, to increase the utilization of costly hardware resources such as CPU. Although hardware is consolidated, typically OSs are not. Instead, each OS running on a physical server becomes converted to a distinct OS running inside a virtual machine. The large server can "host" many such "guest" virtual machines. This is known as Physical-to-Virtual (P2V) transformation. A virtual machine can be more easily controlled and inspected from outside than a physical one, and its configuration is more flexible.