First, it's a scenario the oVirt team seem to actually embrace themselves.

I believe I have seen that type of deployment mentioned either in one of the 
forward looking blog posts or Red Hat summit videos.

And then it simply makes a lot of sense to have those crucial management VMs 
that control the swarm of resources in a cloud run under a fault-tolerant VM 
management environment such as oVirt.

As for nested virtualization, I can only provide some negative experience with 
oVirt.

I've done nested virtualization with VMware, running ESX on VMWare Workstation 
and then some VMs underneath that ESX successfully.

When I tried to do the same with oVirt, running an oVirt hyperconverged cluster 
as VMs on VMware workstation, I got reasonably far, but then every VM I tried 
to launch nested would just stop right at boot.

It first happened with the hosted-engine, as that tries to start as a VM, but 
it happened more obviously when I tried to migrate VMs (just a plain Fedora 30 
in this case) from a physical compute node running oVirt nodeOS to a 
virtualized compute node, running the same current oVirt nodeOS image on VMware 
Workstation (Windows 2016 host, if that matters).

The machine would start the live-migration properly and then just freeze and 
stay frozen until I migrated it back or indeed to any other non-virtualized 
node.

I haven't as yet tried to do that with nested KVM, which I believe might 
actually work: But it's on my things to test, so I'll report back, once I get 
around it.

Actually I am wondering, a) how deep this nesting would be allowed to go and b) 
if the 'leaf' nodes at the last nesting level should actually have nesting 
support activated in their kernel parameters...

Any insight here would be well appreciated.
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