Final answer:
The statement that server virtualization introduces security vulnerabilities is true, as shared underlying hardware can be a vector for security issues if virtual machines are not properly isolated and managed.
Step-by-step explanation:
The statement 'Server virtualization introduces security vulnerabilities by sharing underlying hardware with other virtual machines' is true. Server virtualization involves running multiple virtual machines on a single physical server, which, by nature, introduces potential security risks. Each virtual machine shares the same hardware resources of the host machine, and if not properly isolated and managed, a compromised virtual machine could potentially impact or access data from other virtual machines on the same host. Security concerns such as hyperjacking, where an attacker takes control of the hypervisor managing all virtual machines, or side-channel attacks, where an attacker can infer data from one virtual machine by analyzing the physical hardware's usage patterns, are potential risks. Therefore, rigorous security measures and regular monitoring are essential to maintaining the integrity and security of a virtualized server environment.