What is the difference between Type 1 and type 2 Hypervisor?

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.