Parallels Workstation is a hardware emulation virtualization software, in which a virtual machine engine enables each virtual machine to work with its own processor, RAM, floppy drive, CD drive, I/O devices, and hard disk – everything a physical computer contains. Parallels Workstation virtualizes all devices within the virtual environment, including the video adapter, network adapter, and hard disk adapters. It also provides pass-through drivers for parallel port and USB devices.

Because all guest virtual machines use the same hardware drivers irrespective of the actual hardware on the host computer, virtual machine instances are highly portable between computers. For example, a running virtual machine can be stopped, copied to another physical computer, and restarted.

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