Virtual systems in Palo Alto Networks firewalls are designed for multitenancy by allowing logical separation of resources, management, and inspection. This feature enables multiple tenants or departments to share the same physical hardware while maintaining complete separation in terms of security policies, configurations, and traffic inspection.

Logical Separation: Each virtual system operates independently, with its own dedicated management plane and security policies, ensuring that one tenant's activity does not interfere with another.

Multitenancy: Virtual systems facilitate efficient use of resources, reducing costs while maintaining strict isolation between tenants.

Traffic Segmentation: Virtual systems segregate traffic between different network segments while providing independent threat inspection and logging.

References:

Palo Alto Networks Virtual Systems Overview

Multitenancy Best Practices