There are two types of hypervisors: type 1 and type 2 hypervisor.
In type 1 hypervisor (or native hypervisor), the hypervisor is installed directly on the physical server. Then instances of an operating system (OS) are installed on the hypervisor. Type 1 hypervisor has direct access to the hardware resources. Therefore they are more efficient than hosted architectures. Some examples of type 1 hypervisor are VMware vSphere/ESXi, Oracle VM Server, KVM and Microsoft Hyper-V.
In contrast to type 1 hypervisor, a type 2 hypervisor (or hosted hypervisor) runs on top of an operating system and not the physical hardware directly. A big advantage of Type 2 hypervisors is that management console software is not required.

https://www.cisco.com/c/en/us/td/docs/routers/sdwan/configuration/sdwan-xe-gs-book/system- overview.html#:~:text=Cisco%20vBond%20Orchestrator%20is%20a,network%20can%20connect
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Data policy operates on the data plane in the Cisco SD-WAN overlay network and affects how data traffic is sent among Cisco SD-WAN devices in the network. The Cisco SD-WAN architecture defines two types of data policy, centralized data policy, which controls the flow of data traffic based on the IP header fields in the data packets and based on network segmentation, and localized data policy, which controls the flow of data traffic into and out of interfaces and interface queues on the devices.
Reference: https://www.cisco.com/c/en/us/td/docs/cloud-systems-management/network- automation-and-management/dna- center/tech_notes/sda_fabric_troubleshooting/b_cisco_sda_fabric_troubleshooting_guide.html