Hardware Virtualization is not a feature of the CPU –Nested VMware ESXi

When installing a virtualized instance of VMware ESXi 5 on top of a physical ESXi 5 instance you may receive the following warning message: <HARDWARE_VIRTUALIZATION WARNING: Hardware Virtualization is not a feature of the CPU, or is not enabled in the BIOS>.

As the warning message suggests the reason you are getting the error message is that the virtualized ESXi 5 host that you are trying to install has detected that your (virtual) server isn’t able to (ie: the virtual hardware being presented out by the ESXi hypervisor running on the physical server hardware) the ‘hardware virtualization’. 

 

vSphere Hardware Virtualization is not a feature of the CPU

 

You may also want to checkout my recent post here that covers a similar issue which covers the “This virtual machine is configured for 64-bit guest operating systems”, “However, 64-bit operation is not possible.”, “Longmode is disabled for this virtual machine.” error message and how to resolve it.