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Virtualization is an emerging technology which offers organizations with a range of benefits but still suffers from some potential security challenges. This review paper mainly emphasizes on several security challenges that virtualization technology may introduce to an IT environment. However, the main contribution of the paper lies in summarizing the progress of various individuals in the field of virtualization and its security challenges. To start with, we will further our understanding of the state of knowledge for virtualization technology up until what it means today. We will then provide an in-depth explanation about the various forms of virtualization and discuss the benefits and drawbacks that accompany this form of technology. The paper will also highlight several security challenges that exist in a virtualized environment.