“Bare metal” refers to a physical computer.
Normally when you are using VMs you run a normal OS like Windows or Linux, then you run your VM software (hypervisor) and then than runs your guest OS (Windows, Linux, whatever).
With bare metal hypervisor, you don’t run a normal OS first. The hypervisor is it’s own OS that then runs other OSes. Removes one layer of software so increases performance.
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