Dynamic memory allocation is a memory management technique in which a program can request and return memory while it is executing.
In a virtualized environment, available memory on a physical host is pooled and distributed to virtual machines (VMs) that are running on that host when needed. If a virtual machine isn’t using all of the memory it’s been allocated, the host may allocate one VM's idle memory to another VM.
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Dynamic memory allocation is best suited for workloads that have regular and predictable fluctuations in memory demands.