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Was hoping this comment would be here. Firecracker and microVMs are good use-case. Also, being able to simply test and develop is a nice to have.

Nested virtualization can mean a lot of things. Not just full VMs.

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whats the ~ perf hit of something like this?
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As a practical matter, anywhere from 5-15%.
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Nowadays nested just wastes the extra operating system overhead and I/O performance if your VM doesn't have paravirtualization drivers installed. CPUs all have hardware support.
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