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Virtual storage (VS) refers to the virtualized form of a storage medium, in other words it exists as a construct within a virtual environment.
This acts as an abstraction between the user and the actual storage hardware. Virtual storage is a staple feature of cloud computing and is available usually in the form of online storage or backup.
Virtual storage used to be synonymous to virtual memory, which was an extension of the main memory provided through secondary storage.
However, with the advent of cloud computing, the term has become more literal, simply meaning storage that has been created in a virtual environment.
A virtual storage medium or device is usually also associated with virtual machines. A virtual machine appears to the user as a full-fledged computer with an operating system and all the bells and whistles, and of course with a storage drive of its own.