1. Intel VT-x or AMD-V is required for running "Nested Virtualization" which supports nested 32-bit VMs
2. Intel EPT or AMD RVI is required for running nested 64-bit VMs.
A quick way to verify whether your CPU truly supports both Intel-VT+EPT or AMD-V+RVI, you can paste the following into a browser:
https://[your-esxi-host-ip-address]/mob/?moid=ha-host&doPath=capability
You will need to login with your root credentials and then look for the "nestedHVSupported" property and if it states false, it means you maybe able to install nested ESXi or other hypervisor, but you will not be able to run nested 64-bit VMs, only 32-bit VMs, assuming you have either Intel-VT or AMD-V support on your CPUs.
Physical Host Setup
The physical host running VMware ESXi 5 requires just a few configuration changes; here is a guide:
1. Install VMware ESXi 5 on a physical host and configure networking, storage, and other aspects as needed
2. for your VM Network which your nested vESXi will be located, configure a vSwitch and/or Port Group to have Promiscuous Mode enabled
3. Log in to Tech Support Mode (iLO or ssh) and make the following tweak to enable nested 64-bit guests
echo 'vhv.allow = "TRUE"' >> /etc/vmware/config
Virtual VMware ESXi Machine (vESXi) Creation
For various reasons, it’s not feasible to clone virtual ESXi VMs. As an alternative, create a fully-configured shell VM to use as a template — it can be cloned before ESXi is installed.
Create a new VM with the following guidance:
1. Guest OS: Linux / Red Hat Enterprise Linux 5/6 (64-bit)
2. 2 virtual sockets, 2+ GB RAM
3. Thin provisioned virtual disks work fine
4. Finish creating the VM, then edit the following settings
a. Options/General Options: change Guest Operating System to Other – VMware ESXi 5.x
b. CPU/MMU Virtualization: Use Intel VT … EPT… ( bottom radio button)
5. Don’t power this VM on — keep it to act as a template
6. Clone and install VMware ESXi via ISO p_w_picpath or PXE boot
7. Add to vCenter and configure virtual ESXi hosts for action
Creating a vHyper-V Instance on physical ESXi 5.0:
1. To create a virtual Hyper-V instance, start off by creating a Windows 2008 Server R2 64bit VM using the vSphere Client, and enable "CPU/MMU Virtualization: Use Intel VT … EPT… ( bottom radio button)"
2. You need to add one additional .vmx parameter which tells the underlying guestOS (Hyper-V) that it is not running as a virtual guest which in fact it really is. The parameter is hypervisor.cpuid.v0 = FALSE
3. You are now ready to install Hyper-V in a virtual machine and you can also spin up nested 64bit guestOSes in this virtual Hyper-V instance.
