Among all the virtual hosting options out there, is there one that allows recursive virtual hosting? Can Xen host another Xen instance?
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Answers by: Jake McArthur | darksanity
From the Intel 64 and IA-32 Architectures Software Developer's Manual Volume 3B: System Programming Guide Part 2…
"The [virtual machine] software stack acts as if it were running on a platform with no virtual-machine monitor."
In other words, the virtual CPU, by specification, makes it appear as though it doesn't support virtualization. It is impossible to run a virtualized system inside another virtualized system on x86 architectures.