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Virtual machine meaning

Published by a LexisNexis TMT expert
What does Virtual machine mean?
In legal practice, a virtual machine is a software-only instance of a computer (commonly a server) that runs on a physical “host” machine, drawing a defined share of the host’s processing, memory and storage via virtualisation software (a hypervisor). Multiple virtual machines can operate on one host. The term is descriptive, not defined in legislation or case law in the UK or Ireland, but is widely used in IT, cloud computing (including IaaS), outsourcing and software licensing agreements. Key legal features and implications include: - Isolation/segregation between tenants on shared infrastructure, and the need for defined security controls and audit rights. - Portability and live migration between hosts or data centres, affecting data location, cross‑border transfers and change control. - Performance and availability dependencies on host capacity and resource allocation, relevant to service levels and remedies. - Snapshots, backups and disaster recovery arrangements. - Software licensing metrics (per processor/core, per VM, or capacity-based), restrictions on virtualised use, and compliance/audit counting. - Ownership and control of VM images and data, and exit assistance on termination. Usage and meaning are broadly consistent across England & Wales, Scotland, Northern Ireland and Ireland. Data protection obligations apply under UK GDPR (UK) and EU GDPR (Ireland), with similar practical contracting considerations.
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PRACTICE NOTES
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