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There are several mechanisms available for taking computing resources and distributing them among other machines.

Cluster Computing

A large set of powerful machines are set up, usually for 'number crunching' operations or similar tasks. This processing power can then be used by other machines on the network. Typically this is used in situations like build farms, where large pieces of software are complied across several computers, or in places like computer generated imagery studios, where large numbers of computers all work together to render separate frames of a film.

Virtualisation

In virtualisation, a very powerful host machine acts as a host for several other guest operating systems. Common systems include, VMWare, VirtualBox, qemu and xen. Though the workings of these systems are different, they do all allow the same type of operation, a single powerful host machine, sharing it's resources to several other machines. In virtualisation, the hardware used by the guests is all "virtual" it is emulated and pretends to be real physical hardware.

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