Which technology allows for desktop OS to be hosted within a virtual environment on a central server?

Virtual Desktop Infrastructure (VDI) is the correct answer because it specifically describes the technology that hosts desktop operating systems within a virtual environment on a central server. VDI allows users to access their desktops remotely from various devices while the actual operating system and applications run on centralized servers. This method enhances flexibility and management, streamlining resource allocation and security.

In a VDI setup, each virtual desktop is typically customized per user and can maintain the same performance and experience as a traditional desktop, but with the added benefits of central management and easier scaling. Moreover, VDI solutions can improve security since sensitive data can remain on the servers rather than on individual machines.

Other options do not align as closely with the functionality described. For instance, while Remote Desktop Services provide a way to access a desktop session remotely, they do not necessarily imply that the desktop itself is hosted virtually, as it can connect to physical machines and applications. Cloud Storage refers to online data storage services and does not host operating systems or applications themselves. A Virtual Machine Environment, though related to virtualization, can encompass various types of virtual machines, not just those specifically designed for desktop OS environments. Thus, the specific focus and capabilities of VDI make it the most accurate choice in this context.