Virtualization allows computer users to utilize their resources more efficiently and effectively. Operating system that runs on top of the Virtual Machine or Hypervisor is called guest OS. The Virtual Machine is an abstraction of the real physical machine. The main aim of this thesis work was to analyze different kinds of virtualization software packages and to investigate their advantages and disadvantages. In addition, we analyzed the performance of the virtual software packages with a real operating system in terms of web services. Web Servers play an important role on the Internet. The response time and throughput for a web server are different for different virtualization software packages and between a real host and a virtual host. In this thesis, we analyzed the web server performance on Linux. We compared the throughput for three different virtualization software packages (VMware, QEMU, and Virtual Box). The performance results clearly indicate that the real machine performance is better than the performance of the virtual machines. VMware has the better performance compared to other virtual software packages.