Baremetal compute resources are physical servers, reside directly on the hardware without the virtualization layer. Baremetal compute resources are hosted on dedicated baremetal compute resources, deployed for a single user. Utilization of baremetal servers allows to locate customer's servers on a single piece of hardware. Use of baremetal servers in the cloud makes hardware resource utilization more efficient.
The advantages of baremetal servers:
Baremetal servers are hosted on Xen CloudBoot compute resources, that can be then organized into zones to create different tiers of service - for example, by setting up different zones for baremetal servers, with limits and prices specified per zone. Baremetal compute zones can also be used to create private clouds for specific users. Limits and prices are specified individually for each baremetal compute zone assigned to the billing plan.