Google Compute Engine's server virtualization allows users to run several virtual machines on one physical server. This maximizes resource utilization and minimizes hardware costs. This technology allows for flexibility in managing different workloads, by isolating the environments and enabling multiple tenants. It makes it easier to manage, scale, and deploy applications. Virtualized servers in Google Compute Engine can be fully customized to meet the needs of specific applications. Users can adjust resources like CPU, memory and storage according to their requirements. New customers can get $300 worth of credits to try out server virtualization. This allows them to scale their infrastructure while keeping costs down.