UPDATE (10/14/25) - All Nested ESXi Appliance downloads are now hosted on Broadcom Support Portal (BSP) under the Free downloads for Flings. F0r versions 9.0 and later, an active VVF/VCF entitlement is required and those downloads can be accessed HERE.
For all other Nested Virtualization resources, please take a look here
I have had a few folks ask about Nested ESXi support on VMware Cloud on AWS (VMC), so lets get that out of the way first. Nested ESXi is NOT supported by VMware on any of our platforms, whether that is an on-premises or a cloud environment like VMC or any 3rd party vendors that maybe using VMware software. For those wanting an "official" statement on Nested ESXi support, you can refer to KB 2009916.
UPDATE (02/10/20) - Updated my Automated vSphere Lab Deployment Script to support "basic" Nested vSphere environment running on VMC.
Was asked if it was possible to setup a “basic” Nested vSphere environment for Automation/API testing running in #VMWonAWS
Just updated my Automated vSphere Deployment Lab Script https://t.co/50tJmcDcH2 to enable support for #VMC ? pic.twitter.com/n0SeNIaJm8
— William Lam (@lamw.bsky.social | @*protected email*) (@lamw) February 10, 2020
Now, we all know Nested ESXi works and it runs extremely well on vSphere. In fact, vSphere is the best platform for running any Hypervisor in a VM. This is also true for VMC, you can run a Nested ESXi VM in an SDDC, however there are some caveats compared to what you would experience in an on-prem environment. Below are some of the caveats to be aware of if you are considering running Nested ESXi on VMC.
The idea of "Instant Cloning" a Nested ESXi VM (running ESXi in a VM) is not a new concept. In fact, I had shared a solution back in 2015 using the private VMFork APIs. However, what has changed is the ease of consumption, primarily due to the re-architecture of Instant Clone in vSphere 6.7 (more details here and here) which resulted in a public and simplified API. Some of you might ask, why not simply clone a Nested ESXi VM or create a Link Clone? What benefit would I get by using Instant Clone?
The answer is not only speed, but the fact that the instantiated VM is fully operational and ready to start executing where as a traditional full clone or linked clone requires a full OS boot up that can take up to several minutes to deploy and configure. This may not sound like much for a small number of Nested ESXi VMs, but as you increase the number of instances, Instant Clone really shines while still maintaining speed and the instant availability of the VM. As you can imagine, this definitely opens up for some interesting use cases whether it be for personal home lab or educational purposes like VMware HOL. In addition, we also have customers who deploy Nested ESXi not only at high scale but also with a high churn rate for development purposes, think CI/CD type of a workload who can also benefit from Instant Clone.
So how fast are we talking about? Lets say you wanted to test out the latest version of VSAN in vSphere 6.7, you would normally deploy 3 Nested ESXi VMs, power them up and wait for them to be ready on the network. With Instant Clone, you can deploy three fully functional Nested ESXi VMs in just 30seconds! As the VMs are instantly available for consumption, you can start the VSAN enablement workflow immediately and even parts of that can be baked into the Instant Clone workflow. With the ease of provisioning Nested ESXi VMs, you can simply maintain a catalog of ESXi templates which are in "frozen" states and then leverage Instant Clone to deploy just-in-time Nested ESXi environments and discard them once you are done. Pretty slick if you ask me! and something I plan on using going forward.
Disclaimer: Nested ESXi is still not officially supported by VMware. Please use at your own risk.
