The other advantage of a bare metal server is that the computing resources are guaranteed to actually be there when you need them. VM Providers are known to overbook their physical computing resources, so if other customers happen to use more compute than anticipated then your VMs mysteriously aren’t going to have the performance you paid for.
There’s also a computational cost to virtualization itself, so you can add slightly more performance to a single server before you have to use a distributed system, but that’s probably not significant for the vast majority of businesses.
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