Great question! It’s true that offered K8s solutions in the cloud are very robust, but they all require you to spin up compute instances (virtual machines) to run your Pods/Containers on. These are never optimal in use! There is always free CPU or memory, hence you waste resources.
The Virtual Kubelet allows you to not having to think about compute instances any more. You just say “run this container” and you pay for the exact usage.
The Virtual Kublet comes production ready and managed on AKS (Azure) and they have great videos about it, like this one: https://www.youtube.com/watch?v=lrb9XL6Pcas