diff --git a/deployment/puppet/openstack/manifests/compute.pp b/deployment/puppet/openstack/manifests/compute.pp
index 5e0ac228fa..84d2d3d44d 100644
--- a/deployment/puppet/openstack/manifests/compute.pp
+++ b/deployment/puppet/openstack/manifests/compute.pp
@@ -265,15 +265,11 @@ class openstack::compute (
       nova_shell             => '/bin/bash',
   }
 
-  # CPU configuration created using host-model may not work as expected.
-  # The guest CPU may differ from the configuration and it may also confuse
-  # guest OS by using a combination of CPU features and other parameters (such
-  # as CPUID level) that don't work. Until these issues are fixed, it's a good
-  # idea to avoid using host-model
-  # http://libvirt.org/formatdomain.html#elementsCPU
-  # https://bugs.launchpad.net/mos/+bug/1618473
-  $libvirt_cpu_mode = 'none'
-
+  if str2bool($::is_virtual) {
+    $libvirt_cpu_mode = 'none'
+  } else {
+    $libvirt_cpu_mode = 'host-model'
+  }
   # Install / configure nova-compute
 
   # From legacy ceilometer notifications for nova