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Thin Provisioning refers to a cost-saving method of providing storage in virtualized storage environments. Thin provisioning has several advantages over traditional. Full provisioning is designed in traditional provisioning to used the full capacity of an external hard drive for a given application, providing the application a good potential, but often translating into reduced utilization rates, a problem that increases costs and this can be addressed with thin provisioning.

Virtualization and various virtualization related technologies has been explained including hardware virtualization, Software virtualization.