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This type of hypervisor controls not only the hardware, but one or more guest operating systems (OSes). In comparison, a client hypervisor, or Type 2 hypervisor, runs within the host OS, so the underlying hardware is managed by the host OS.
Bare-metal hypervisors feature high availability and resource management; they also provide better performance, scalability and stability because of their direct access to the hardware. On the other hand, the built-in device drivers can limit hardware support.