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It is a two-level implementation of [[fair-share scheduling]] strategy.
On the first level the scheduler decides which VE is to give the CPU time slice to, based on per-VE <code>cpuunits</code> values. On the second level the standard Linux scheduler decides which process to run in that container, using standard Linux process priorities and such.
OpenVZ administrator can set up different values of <code>cpuunits</code> for different containers, and the CPU time will be given to those proportionally.