A logical partition, commonly called an LPAR, is a subset of a computer's hardware resources, virtualized as a separate computer. Each LPAR is completely independent of the other instances and can run its own Operating System and Applications. KVM is a hypervisor running on CPU with hardware virtualization extension, providing services that allow multiple computer operating systems to execute on the same hardware concurrently.

Depending on the requirement of your application you can choose from Standard LPARs (more dedicated cores, lower frequency, ideal for multithreaded applications) or High frequency LPARs (less dedicated cores but with higher frequency)