Nested virtualization in Azure
Updated: July 21, 2017
We're excited to announce that you can now enable nested virtualization using the Dv3 and Ev3 virtual machine sizes. We'll continue to expand support to more virtual machine sizes in the coming months.
Not only will you be able to create a Hyper-V container with Docker (see instructions here), but also by running nested virtualization, you'll be able to create a virtual machine inside a virtual machine. The nested environment provides great flexibility supporting your needs in various areas such as development, testing, customer training, demo, and more. For example, suppose you have a testing team using Hyper-V hosts on-prem today. They'll now be able to easily move their workloads to Azure by using nested virtual machines as virtualized test machines. The nested virtual machine hosts will be used to replace physical Hyper-V hosts, and the individual testing engineer will have full control over the Hyper-V functionality on their own assigned host in Azure.