Quote from Wikipedia:
Application virtualization is an umbrella term that describes software technologies that improve portability, manageability and compatibility of applications by encapsulating them from the underlying operating system on which they are executed. A fully virtualized application is not installed in the traditional sense, although it is still executed as if it is. The application is fooled at runtime into believing that it is directly interfacing with the original operating system and all the resources managed by it, when in reality it is not. Application virtualization differs from operating system virtualization in that in the latter case, the whole operating system is virtualized rather than only specific applications.
Application virtualization is new? No not really,
VMware pioneered in this field already for more than a year with something that was previously called ‘thinstall‘. A virtualisation technique that’s has matured and evolved into ThinApp.
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