PowerVM offers a number of different options for using processor resources in LPARs. In the simplest case, dedicated processors are assigned to an LPAR. The LPAR can then use 100% of the assigned dedicated processors and does not have to compete with other LPARs for processor resources. In most cases, processors (or processor cores) are shared between LPARs in order to achieve better utilization of the processors. One then speaks of so-called shared processors, in contrast to dedicated processors. The division of a shared processor into parts, which are then assigned to the LPARs, is called micro-partitioning. The POWER Hypervisor divides the shared processors to the associated LPARs using a time slice method.

There are further configuration options for both variants. In particular, pools of shared processors can be configured and LPARs can then be assigned to one of the pools.