Earlier quoted context omitted.
Especially since Oxide has a big fancy firmware stack. I would expect this stack to be able to do an excellent job of securely allocating bare-metal (i.e. VMX root on x86 or EL2 if Oxide ever goes ARM) resources. This would allow workloads on Oxide to run their own VMs, to safely use PCIe devices without dealing with interrupt redirection, etc.
I'm not affiliated with Oxide but I don't think you can put Crucible and VPC/OPTE in firmware. Without a DPU those components have to run in the hypervisor.
But I do wonder why cloud and cloud-like systems aren’t more aggressive about splitting the infrastructure and tenant portions of each server into different pieces of hardware, e.g. DPU. A DPU could look DPU could look like a PCIe target exposing NVMe and a NIC, for example.
Obviously this would be an even more custom design than Oxide currently has, but Oxide doesn’t seem particularly shy about such things.