Yes, the the containers are running on bare-metal multi tenant hardware. Some of the savings comes from the performance gains as noted elsewhere, but additional savings comes from not having to pay for and manage an additional layer of virtual machines.
There's no need to provision anything other than the containers.
Actually, because the container runs on bare metal, there's no need to provision virtual machines before running containers.
Yes, the data center operator needs to install the hardware compute nodes, but after that there's no additional step to provision anything else but the containers themselves.