What is the Audi A8's Virtual Cockpit feature and how does it differ from traditional instrument clusters?

I recently test drove an Audi A8 and saw that it had a Virtual Cockpit display instead of a traditional instrument cluster. What is the purpose of this feature and how does it differ from the traditional setup?

The Virtual Cockpit is a fully digital and customizable display that presents all of the relevant information to the driver in one central location. It eliminates the need for physical dials and gauges, and allows for a sleeker and more modern design.