"They enable organizations to run virtual machines within a virtual machine. According to The Register, this technology is particularly relevant for scenarios in which entire IT environments need to be simulated or tested. In such cases, the environment often consists of multiple interdependent virtual systems. Nested virtualization can also play a role in modern container platforms, for example when orchestration and management layers need to remain separate from the underlying workloads."
"AWS notes that the functionality can be used for software emulation, automotive simulations, and development environments that run Linux on Windows, among other applications. Until now, nested virtualization within AWS has been limited in practice to bare-metal instances, where customers have direct access to the physical hardware. With the new support, this limitation has been partially removed. The new capabilities are linked to the use of Intel Xeon 6 processors. This generation includes improvements in hardware isolation that better separate virtual environments."
"For nested virtualization, Nitro passes certain processor functions to the customer's virtual machine. This allows the machine to act as a host for an additional virtualization layer. AWS uses a multi-layer model in which the physical infrastructure, the customer hypervisor, and the virtual machines running on top of it are clearly separated. Currently, customers can choose Hyper-V or KVM as the hypervisor within the EC2 instance. VMware ESXi is not explicitly mentioned as a supported option. This is striking, because ESXi still plays a dominant role in many business environments."
AWS now supports nested virtualization on select EC2 instance types (C8i, M8i, R8i), enabling virtual machines to host additional virtual machines. Use cases include full IT environment simulation, multi-system testing, software emulation, automotive simulations, and development workflows such as running Linux on Windows. The capability was previously limited to bare-metal instances but is now available on virtualized Nitro-based instances using Intel Xeon 6 processors with improved hardware isolation. Nitro passes processor functions to customer VMs so they can act as hypervisor hosts. Customers can run Hyper-V or KVM inside EC2; VMware ESXi is not explicitly listed as supported.
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