Hypervisors use a thin layer of code in software or firmware to allocate resources in real-time. You can think of the hypervisor as the traffic cop that controls I/O and memory management.
Type 1 hypervisors run directly on the system hardware. They are often referred to as a “native” or “bare metal” or “embedded” hypervisors in vendor literature.
Type 2 hypervisors run on a host operating system. When the virtualization movement first began to take off, Type 2 hypervisors were most popular. Administrators could buy the software and install it on a server they already had.
Using a Type 2 hypervisor offers flexibility, control and security on endpoints where work on testing and development occurs.