whether hypervisor will decide the capacity of virtual infrastructure? How?

Yes, a hypervisor can decide the capacity of virtual infrastructure by allocating CPU and memory resources to virtual machines (VMs). It does this by abstracting physical resources into virtual equivalents and distributing them through schedulers and memory managers. The hypervisor maps virtual CPUs (vCPUs) to physical logical processors and uses a time-slicing scheduler to decide which vCPU gets the next slice of real CPU time. For memory, the hypervisor presents each VM with its own contiguous physical address space backed by host RAM, reclaiming unused pages using techniques like ballooning, transparent page sharing, compression, and swap. When resources are scarce, weighted controls such as shares, reservations, and limits determine which VM gets access first. This process ensures that each VM operates with the allocated resources, maintaining performance and efficiency across the virtual infrastructure.
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