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What are the differences between Cloud Virtual Machines and Virtual Machines on a computer?

Google has a service that allows you to create Virtual Machine on his Cloud. There are many Virtual Machine Types like Browsers (StackBrowsers), Mobile Phone, Operating Systems. You can use the Cloud ...
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Combining multiple linux boxes and create VMs out of it

I am running on Ubuntu. I have a set of linux machines (5 to 6 machines). Which I want to combine as a single resource pool and on demand create multiple virtual instances of machines out of it. ...