No potential for causing over-commitment collisions. It occupies the physical HDD space automatically on the file system of the host machine. It contains a RAW disk image followed by the VHD footer (512 bytes). This VHD type is allocated to the size of the Virtual disk drive. Microsoft Virtual PC and Virtual Server support the following types of VHD formats: Fixed Hard Disk The primary function of a virtual hard disk is to allow multiple operating systems to reside on a single machine used as a host system. It’s just like a physical HDD, and it may contain disk partitions, file systems, and other files and folders. In the same way, a Virtual hard disk plays an important role in a Virtual machine. In a computer system, the hard disk plays an important role. Minimize or completely eliminate downtime. 
Maximize productivity, efficiency, agility, and responsiveness.Some additional advantages of the virtual machine include: Even the operations become automated and simpler to manage. Workload gets down through virtualization, while performance and availability definitely increases.
Also, it creates significant cost savings. The primary objective of virtualization is to increase IT agility, flexibility, and scalability. You can put one, two or multiple VMs on a single computer system enabling several operating systems and applications to run on a host system. Each virtual machine is completely independent. Virtualization creates a virtual computer system, called a virtual machine that contains an operating system and application inside.
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