A hypervisor abstracts the physical server hardware and presents virtual hardware to each virtual machine. That includes CPU, memory, storage, and virtual network interfaces. The virtual machine sees a logical machine, while the hypervisor schedules and allocates the real physical resources underneath it. This is the core function of server virtualization and is part of Cisco CCNA 200-301 v1.1 Network Fundamentals because modern network engineers must understand how servers connect through virtual switches and how traffic leaves a hypervisor toward the physical network. A hypervisor is not limited to one VM, and it does not magically communicate at Layer 3 without network resources. The idea that virtualized servers run best only when connected to a separate physical switch misunderstands virtualization; VM traffic can be switched inside the host through a virtual switch before reaching a physical NIC. The correct statement is that the hypervisor virtualizes physical components so multiple independent workloads can run on one host.