"Guest" VMs as well as OSs are protected from the core servers by cloud hypervisors. In order to allocate resources and prevent conflicts, the Cloud Hypervisor intercepts OS requests for available resources (CPU, memory, disc, print, etc.). Operating in a less authorized manner than the hypervisor, guest VMs and OSs frequently are unable to affect the hypervisor's behaviour or even that of other guest VMs.

Hosted and raw metal or native hypervisors are the two primary categories (Type 1). (Type 2). Type 1 hypervisors run solely on the architecture of the host machine without the requirement for an operating system. These hypervisors have direct communication with the host machine's resources. Type 1 systems include VMware ESXi and Microsoft Hyper-V.

Type 2 hypervisors frequently rely on the operating of the host computer and run on top of it in order to access system resources. Type 2 hypervisors are often used at home as well as for testing VM capabilities because they are easier to set up and run because the OS has already been installed. VMware Player as well as VMware Workstation are Type 2 hypervisors.

KVM is a popular hybrid hypervisor with just a few Type 1 and Type 2 characteristics (Kernel-based Virtual Machine). Linux has an integrated open-source hypervisor that allows it to perform both operating system and Type 1 hypervisor functions.