To add Windows or another operating system to your Mac, Parallels Desktop creates a "virtual machine," or a virtual computer, inside your Mac. You can then install Windows in the virtual machine, just as you would install an operating system on a regular computer.
Many use Parallels Desktop to create one virtual machine and install Windows in it. But you can install as many virtual machines as you like, and install a different operating system in each of them. That way you can use multiple operating systems together at the same time on your Mac. And just like with a regular computer, you can turn virtual machines on and off, configure them, and install and use applications.
By default, Parallels Desktop stores virtual machines in ~/Parallels.
To change the default location for new virtual machine installations:
Do one of the following:
Click the Parallels Desktop icon in the menu bar and choose Preferences. Then click General.
Right-click the Parallels Desktop icon in the Dock and choose Preferences. Then click General.
Choose a location from the Virtual Machines Folder menu.
All newly created virtual machines are stored in the new location. Any existing virtual machines remain in their original locations.