What does storage virtualization technology do?

Storage virtualization technology enables improved storage utilization by pooling physical storage resources and allocating them dynamically to multiple virtual machines. This approach allows for a more efficient use of available storage, as it abstracts the underlying physical storage systems and presents them as a single virtualized resource.

By consolidating storage resources, virtualization technology helps organizations manage their data more effectively, as it can allocate storage based on the actual needs of virtual machines rather than being tied down to specific physical devices. This flexibility not only optimizes usage but also simplifies management operations, allowing for easier scaling and improved performance across the system.

The other options suggest limitations or drawbacks that are not accurate representations of storage virtualization's capabilities, which can lead to misunderstandings about its benefits and applications in a cloud computing environment.