Nested Virtualization is not a new idea. In fact, we announced our first preview of Nested Virtualization running on Windows way back in 2015. From that Windows Insider preview to now, Nested...
Updated Jun 13, 2020
Version 2.0
Blog Post
Guys, I don't know if you have a similar observation, or this is only happening on my hardware, but when I create a VM and enable nesting for that VM then as soon as I install HYPER-V role in that machine I see a significant performance degradation in that VM. For example before installing HYPER-V in that VM the CPU-Z benchmark is giving me around 3400 points multi thread and 500 points single thread, however as soon as I install HYPER-V that same benchmark in that same VM is giving me points in range (2000 - 3000 for multi thread) and (300-470 for single thread), which means that performance degrades from 10% till 40% and more over it is unstable between benchmark runs.
I wasn't able to experience such behavior on Intel based system - enabling nesting and HYPER-V in VM does not degrade its performance in any meaningful way. My hardware is Ryzen 7 3700X for AMD and i7-10700 for Intel. I observe such degradation for AMD when using both Windows 11 and Windows Server 2022 as host.