In simple terms, a virtual environment inside another virtual environment is known as a nested virtual environment. If the hardware resource permits, a nested virtual environment can open up whole new possibilities for a company. The most common scenario of a nested virtual environment is to set up a fully isolated test environment to test software such as hypervisor, or operating system updates/patches before applying them in a live environment.

A nested environment can also be used as a training platform to teach computer and network virtualization, where students can set up their own virtual environment from the ground without breaking the main system. This eliminates the high cost of hardware for each student or for the test environment. When an isolated test platform is needed, it is just a matter of cloning some real virtual machines and giving access to authorized users. A nested virtual environment has the potential to give the network administrator an edge...