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To deploy a new Hyper-V host from bare metal, the following simple steps are carried out by System Center 2016 Virtual Machine Manager (VMM) :

1. VMM Discovers the physical computer through out-of-band management (BMC)
2. VMM Installs an OS image on the physical computer using a previously created physical computer profile.
3. VMM Enables the Hyper-V role on the physical computer.
4. VMM Brings the computer under VMM management as a managed Hyper-V host.

Now in order for that to happen, let’s see what pre-requisites you are required to provide first:

1. DNS and Active Directory
   Create DNS entries and Active Directory account for the machine names.
2. BIOS
   
   a. Set up the BIOS on the machine to support virtualization: Configuring the BIOS boot order to boot from (PXE)-enabled network adapter as the first device.
   b. Configure the BMC settings. Configure the logon credentials and IP address settings for the BMC on each computer.
3. Add a PXE server environment: A PXE server integrated to VMM is required for Bare Metal deployment.
4. Add resources to VMM library: Add a generalized virtual hard disk with an suitable OS to use as the base image, and driver files that will be added to the during installation of the OS.
5. Create a Run As account. In VMM create a Run As Account with permissions to access the BMC.
6. Create Physical Computer profiles: In the VMM library, create one or more physical computer profiles. These profiles include configuration settings, such as the location of the operating system image, and hardware and OS settings.

Now let’s have a look on the step by step to provision a Hyper-V host using Baremetal Deployment:

1. Click Fabric > Servers > Home > Add > Add Resources > Hyper-V Hosts and Clusters.
2. In the Add Resource Wizard > Resource location, select Physical computers to be provisioned as virtual machine hosts.
3. In Credentials and Protocol select the Run As account with permissions to access the BMC. In the Protocol list, click the out-of-band management protocol that your BMCs use. If you want to use Data Center Management Interface (DCMI), click Intelligent Platform Management Interface (IPMI). Although DCMI 1.0 is not listed, it is supported. Make sure the correct port is selected.
4. In Discovery Scope, enter the single IP address, the IP subnet, or the IP address range that includes the IP addresses of the BMCs

Note:

• If you specify a single IP address, when you click Next, the computer is restarted.
• If you specify an IP address range, when you click Next, information about the computer is displayed, and you can confirm that you specified the computer that you meant to.

4a. If you specified an IP subnet or IP address range the Target Resources page appears. Select the BMCs you want to provision as Hyper-V hosts.

5. In Provisioning Options, click a host group for new Hyper-V hosts. Select the physical computer profile you want to apply.
6. In Deployment Customization, provide information for each computer that you want to provision as a Hyper-V host:

Note: To remove a BMC from the list, select it and then click Remove.

For each BMC IP address in the list:

1. • Click the BMC IP address and specify a unique computer name, without wildcard characters.
   • Select or clear Skip Active Directory for this computer name. The Active Directory check prevents deployment if the computer account already exists.
   • For each BMC IP address in the list:
   • Click on the Network Adapter (on the left) to modify the configuration, or fill in more information. You can specify the MAC address of the management NIC (not the BMC) and static IP settings for this network adapter.
   • To specify an IP address select a logical network and an IP subnet if applicable. If the selected IP subnet includes IP address pool, you can check Obtain an IP address corresponding to the selected subnet. Otherwise, type an IP address that’s within the logical network or its subnet.
   • Configure the adapter settings for each network adapter. You must specify any information that is missing for the adapters.
   • When all information for the listed BMC are completed, click Next.

7. In Summary, confirm the settings, and then click Finish to deploy the new Hyper-V hosts and bring them under VMM management.

Make sure that all steps in the job have a status of Completed.

8. To confirm that the host was added click Fabric > Servers > All Hosts > host group, and verify that the new Hyper-V host appears in the group.

Note: Nano Server is not a supported OS for infrastructure-related roles like Hyper-V. I recommend that you use Windows 2016 Core Server version