The word "virtualization" is thrown around so much that it's hard to always know what it means. A virtual switch is usually a large, high port count director-class product, which can logically partition some number of its physical ports to create one or more logical switches within the physical director. Each virtual switch can then function as an independent switch on different fabrics or on the same fabric. Partitioning a switch can help to segregate traffic. It's similar to partitioning a server where one physical server runs multiple virtual machines -- a VMware environment is one common example. [For more relevant product details, see the All-In-One Buying Guide to Storage Virtualization.]
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