Not so long time ago Microsoft announced another virtualization feature – Nested Virtualization. What is this? In general speaking it is a hyper-v feature that let’s you run hyper-v feature on a VM! Cool, isn’t it?
So how does it work? Pretty simple. Basically on your VM you just need to add Hyper-V role, reboot the VM, and setup the VM within the VM as you would do it on the host (in this case guest-host). So in theory your guess VM becomes guess-host VM. And if you run another Hyper-V instance on you guest-host VM it becomes guest-guest-host 🙂 Interesting if anyone thought of the proper naming of it, especially when it comes to troubleshooting 🙂
Most likely that there is no a big potential to run the production workloads using nested virtualizations, however for the test scenarios it is a perfect use case.
Below graph shows you how nested virtualization is working on Azure on Hyper-V layer.