This is a big deal because you can now run Firecracker/other microVMs in an AWS VM instead of expensive AWS bare-metal instances.
GCP has had nested virtualization for a while.
Was hoping this comment would be here. Firecracker and microVMs is a 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.
whats the ~ perf hit of something like this?
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.
As a practical matter, anywhere from 5-15%.