It has been finally announced that you can now enable nested virtualization using the Dv3 and Ev3 VM sizes. The Dv3 and Ev3 sizes are also some of the first VM’s to be running on Windows Server 2016 hosts. The Dv3 and Ev3 sizes introduce Hyper-Threading Technology running on the Intel® Broadwell E5-2673 v4 2.3GHz processor, and the Intel® Haswell 2.4 GHz E5-2673 v3. Continued support will expanded to more VM sizes in the coming months as announced by the Azure Team.
This is a very interesting update from the Azure team, not only you can create a Hyper-V container with Docker (Read post on Docker), but also can run nested virtualization. You can create a VM inside a VM and inside a VM deep down about 4 Levels. Such nested environment provides great flexibility in supporting your needs in various areas such as development and testing, customer training, demo and even Labs etc. For example, suppose your Dev and Test team uses Hyper-V hosts on-prem today. They can now easily move their workloads to Azure by using nested VMs as virtualized test machines. The nested VM hosts will be used to replace physical Hyper-V hosts, individual testing engineer will have full control over the Hyper-V functionality on their own assigned VM Host in Azure.
Let’s look at another example, suppose you want to run your development code, tests or applications on a machine with multiple users on it without impacting them, you can use the nested virtualization technology to spin up independent environments on demand to do that. Within nested VMs, even if you are running a chaos environment your users will not be impacted.
If you will like to deploy the Nested Virtualization in your Dev-Test / Lab Environment find the link here to the Powershell Script built by Azure Engineer Cheng Ding
Also watch the detailing Demo Video Azure Nested Virtualization
Hope you explore the Nested Virtualization more like i would.