Hardware virtualization refers to the creation of a virtual 'machine' that acts like a normal computer. The programs are really running on a separate piece of hardware, but appear to be running on the actual machine.
VMs is the term you've probably heard. They are becoming widely used. There are virtual desktops and virtual servers. Each used for different things. There are pros and cons, and various ways to use virtualization. We'd be happy to discuss these items with you.