Which of the following describes storage virtualization?

Storage virtualization refers to the process of abstracting and pooling physical storage resources so they can be managed as a single entity or device, regardless of the underlying hardware. By consolidating multiple storage devices into one logical unit, organizations can simplify management, improve resource utilization, and enhance scalability. This abstraction allows for greater flexibility in storage allocation and reduces the complexity involved in managing heterogeneous storage environments.

The other options do not accurately capture the essence of storage virtualization. For instance, physical separation of data into different locations does not align with the core principle of virtualization, which is about unifying and managing resources. Similarly, while integrating local storage with cloud storage is important, it does not define virtualization specifically; it pertains more to hybrid storage solutions. Finally, restricting operations to the creation of physical backups does not reflect the broader capabilities of virtualization, which extends beyond just backup functionalities.