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articles/lab-services/concept-nested-virtualization-template-vm.md

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# Nested virtualization on a template virtual machine in Azure Lab Services
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Azure Lab Services enables you to set up a [template virtual machine](./classroom-labs-concepts.md#template-virtual-machine) in a lab, which serves as a base image for the VMs of your students. Teaching a networking, security or IT class can require an environment with multiple VMs. The VMs also need to communicate with each other.
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Azure Lab Services enables you to set up a [template virtual machine](./classroom-labs-concepts.md#template-virtual-machine) in a lab, which serves as a base image for the VMs of your students. Teaching a networking, security or IT class can require an environment with multiple VMs. These VMs also need to communicate with each other.
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Nested virtualization enables you to create a multi-VM environment inside a lab's template virtual machine. Publishing the template will provide each lab user with a virtual machine that has multiple VMs within it. This article explains the concepts of nested virtualization on a template VM in Azure Lab Services, and how to enable it.
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Nested virtualization enables you to create a multi-VM environment inside a lab's template virtual machine. Publishing the template provides each lab user with a virtual machine that has multiple VMs within it. This article explains the concepts of nested virtualization on a template VM in Azure Lab Services, and how to enable it.
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## What is nested virtualization?
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- Client VMs don't have access to Azure resources, such as DNS servers, on the Azure virtual network.
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- The host VM requires additional configuration to let the client machines have internet connectivity.
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- The host VM requires extra configuration to let the client machines have internet connectivity.
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- Hyper-V client VMs are licensed as independent machines. For information about licensing for Microsoft operation systems and products, see [Microsoft Licensing](https://www.microsoft.com/licensing/default). Check licensing agreements for any other software you use, before installing it on the template VM or client VMs.
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- Virtualization applications other than Hyper-V are [*not* supported for nested virtualization](/virtualization/hyper-v-on-windows/user-guide/nested-virtualization#3rd-party-virtualization-apps). This includes any software that requires hardware virtualization extensions.
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## Enable nested virtualization on a template VM
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To enable nested virtualiztion on a template VM, you first connect to the template VM with a remote desktop client. Then, you make a number of configuration changes inside the VM.
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To enable nested virtualization on a template VM, you first connect to the template VM with a remote desktop client. You then make the required configuration changes inside the template VM.
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1. Follow these steps to [connect to and update the template machine](./how-to-create-manage-template.md#update-a-template-vm).
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>[!NOTE]
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>The NAT network created on the Lab Services VM will allow a Hyper-V VM to access the internet and other Hyper-V VMs on the same Lab Services VM. The Hyper-V VM won't be able to access Azure resources, such as DNS servers, on an Azure virtual network.
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You can accomplish the tasks listed above by using a script, or by using Windows tools. Learn how you can [enable nested virtualization on a template VM in Azure Lab Services](./how-to-enable-nested-virtualization-template-vm-using-script.md).
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You can accomplish the tasks listed previously by using a script, or by using Windows tools. Learn how you can [enable nested virtualization on a template VM with scripting](./how-to-enable-nested-virtualization-template-vm-using-script.md).
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## Processor compatibility
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