Running a virtual machine (VM) inside a VM might sound inefficient, but hardware-assisted virtualization on recent CPUs means there’s only a moderate performance penalty and this nested virtualization unlocks a lot of options for traditional applications and for applications that mix and match containers and VMs. Microsoft Azure has the feature live already (it’s part of the Windows Server 2016 feature set that Azure runs on, and it’s available for recent VM instance types in all regions).

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