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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.

Running Nested ESXi, NSX-V or NSX-T on top of NSX-T

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Nested Virtualization is an extremely useful tool that helps customers easily test and try out new VMware products and solutions before rolling that into a proper development environment for further validation. This is especially handy for those wanting to setup an NSX-based environment and simulating their actual deployment topology, configuration and upgrade workflows.

In this past year, I have seen a 10x increase in the number of NSX-T based questions that have come up from customers and our field, the adoption of NSX-T is definitely in full swing. As expected, questions about running Nested ESXi on top of a physical NSX-T deployment has come up and there has actually been several variations that have been asked about whether that is Nested ESXi using VSS, VDS, NSX-V or even NSX-T running on top of an N-VDS, which is the virtual switch that NSX-T uses.

Luckily all of these combinations work and just require some basic configuration changes within NSX-T. However, before I continue, let me remind folks again that VMware does NOT officially support Nested Virtualization.

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