Erlang on Xen is a highly compatible Erlang VM capable of running as Xen guest OS. We have been running Erlang on the bare virtual iron since 2011.
With Erlang on Xen, in less than 100 milliseconds after the launch a new node starts to run the application code. Its startup latency is thus 100-1000 times lower than that of a typical Linux + Erlang VM combo. The overall performance does not suffer - Erlang on Xen repeatedly scores better in Estone tests than the standard Erlang (Erlang/OTP 15B). Coupled with modest resource consumption - image sizes start with a nominal 1M - Erlang on Xen paves the way to zero footprint clouds, clouds that provision instances after the request for processing has been received.
The code is available as open source at github.com/cloudozer/ling