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I would say it's mostly that nobody optimized it (perhaps yet) for that environment. There's generally nothing inherently slow in the VM boot sequence - it's just that this was not a priority, so it's slow. There are some attributes suggesting it could be a good fit for that environment, for example, the VM is generally very small - you can get a full system in ~20MB - and that again wasn't something that was heavily optimized.

There was Erlang on Xen using LingVM awhile back.

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