Having a virtual device layer on top of your operating system and hardware may be beneficial for a number of applications. But when it comes to data-intensive workloads, having bare metal will provide you with better flexibility and control.
Virtualization vs. bare metal
So comparing virtualization versus bare-metal cloud services, or even just bare-metal servers, naturally, that hypervisor layer adds an extra additional layer of abstraction for your application to communicate with the hardware. For most use cases, the virtualization layer meets most needs. It provides adequate, or even pretty good performance for most applications. Some applications, however, do not react well, or do not interact well with that virtual device layer. So instead, they benefit from having direct access to the operating system and its underlying hardware. So there can be performance benefits for certain applications using bare-metal servers and bare-metal cloud.