What is a Virtual Hard Drive Disk (VHD) primarily used for?

A Virtual Hard Drive Disk (VHD) is primarily used as a storage space within a physical disk. It is essentially a file that contains the contents and structure of a virtual hard disk. This file can hold an entire file system, including files and folders, as well as a partitioning system, much like a real disk drives. VHDs are effectively used in virtual machine environments, allowing multiple operating systems to run independently on a single physical machine by simulating a complete hard drive.

By using VHDs, organizations can optimize their storage solutions and make better use of their hardware resources. They are particularly useful for virtualization, backup, and testing purposes, as they allow users to create snapshots and manage virtual systems without requiring additional physical hardware.