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Exploring the new vSphere with Tanzu VM Service with Nested ESXi

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After upgrading my homelab to the latest vSphere 7.0 Update 2a, I was looking forward to kicking the tires on the highly anticipated vSphere with Tanzu Virtual Machine Service capability. Both Oren Penso and Myles Gray have both done a fantastic job on their respective blogs here and here demo'ing the new VM Service.

While browsing through Oren's Github repo since I came across his blog post first, a couple of things quickly caught my attention. The first was a reference to OvfEnv transport with the YAML manifests and the second was that he was able to deploy an Ubuntu VM, which is interesting since only CentOS is currently officially supported. Why was this interesting? Well, with these two pieces of information, I had a pretty good theory on how the guest customizations were being passed into the GuestOS for configuration and this gave me an idea 🤔

I decided to put my hypothesis to the test and try out the VM Service and deploy one of my Nested ESXi Virtual Appliance and as you can see from the tweet below, it worked! 🤯

Disclaimer: vSphere with Tanzu and the VM Service currently only officially supports CentOS images for deployment, other operating systems are currently not supported. This is primarily for educational and experimentation purposes only.

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Simplified Nested ESXi installation in ESXi 7.0 Update 2 using HTTP Boot over VirtualEFI

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Deploying an ESXi scripted installation aka Kickstart running within a VM (Nested ESXi) has a number of benefits, especially for testing and development purposes. This was something I did regularly as a customer, especially with new releases of ESXi to ensure our existing automation scripts and processes continued to work before rolling out into production. ESXi kickstart itself is pretty straight forward, but the required supporting infrastructure (PXE Server, DHCP, TFTP, etc) that needs to be configured, especially for a greenfield deployment can often be challenging for new comers.

Even with an existing PXE infrastructure, it can often be difficult to configure or troubleshoot depending on your level of access which does not add any value in actually testing or automating the ESXi scripted installation process. In ESXi 7.0 Update 2, an enhancement was made to the Virtual Machine's UEFI firmware called VirtualEFI that would enable ESXi to perform an HTTP Boot given the ESXi bootloader URL and without requiring any of the traditional PXE infrastructure.

To take advantage of this new capability, you just need to have a physical server running ESXi 7.0 Update 2 and a VM that is configured with the latest vHW19 compatibility. To configure HTTP boot, you will need to add the following two VM Advanced Settings:

  • networkBootProtocol - httpv4 or httpv6
  • networkBootUri - HTTP URL to the ESXi bootloader (bootx64.efi)

Disclaimer: Nested ESXi and Nested Virtualization is not officially supported by VMware

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Heads Up - Nested ESXi crashes in ESXi 7.0 running on older CPUs

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Thanks to Patrik Kernstock, who works in our Technical Support organization at VMware, for making me aware of an issue related to Nested ESXi running on an ESXi host that has been upgraded to ESXi 7.0. Several folks in the community have noticed after upgrading their Intel NUC 7th Gen and deploying a Nested ESXi VM and powering on an inner-guestOS would causes the Nested ESXi VM to crash.

Upon further investigation, it looks like this is not specific to the Intel NUC platform but rather with a specific generation of CPUs which are Intel Sky Lake-based and as a result, some customers are noticing this affect on their 7th Gen NUC.

UPDATE (06/23/20) - ESXi 7.0b has just been released and contains the fix for the Nested ESXi VM crash. If you are using an Intel NUC 10, do not just apply the patch as the updated ne1000 VIB within the patch will override existing Intel NIC driver causing the network adapter to no longer function. It is recommended that you download the patch and replace the default ne1000 VIB using Image Builder with the Intel NIC version before applying the update. To download the patch, please visit VMware Patch Portal site.

The good news is that this issue has already been reported and we should have a fix in a future update of ESXi. In the meantime, you can still run Nested ESXi and Nested Virtualization on these affected CPUs, you just will not be able to power on inner-guest VMs. Big thanks to Patrik for helping out with the testing and triaging this internally.