What is a simulated computing environment created by software and hardware known as?

The term that best describes a simulated computing environment created by software and hardware is a virtual environment. In the context of computing, a virtual environment allows multiple operating systems or instances of operating systems to run concurrently on a single physical machine by using virtualization technology. This is achieved using a hypervisor, which allocates resources dynamically and enables isolation between different environments or instances.

A virtual environment can be utilized for various purposes, such as testing software, running applications in a controlled setting, or improving resource utilization. This is especially useful in development, where changes can be tested without affecting the actual production system. The flexibility of virtual environments makes them a cornerstone of modern IT infrastructure, particularly in cloud computing and server consolidation strategies.

In contrast, a physical machine refers to the actual hardware itself, while an application server is a software framework that provides an environment to run applications. An operating system is the software that manages hardware resources and provides services for application software. Each of these alternatives lacks the specific focus on simulation and virtualization that clearly defines a virtual environment.