diff --git a/vsphere/README.md b/vsphere/README.md
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+++ b/vsphere/README.md
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+# Lab of vSphere Machines
+
+Fetch the latest vSphere 7.0 installation iso and customize it for automated install.
+
+```sh
+sudo mount VMware-VMvisor-Installer-7.0U1c-17325551.x86_64.iso /mnt -o loop,ro
+sudo mkdir /tmp/vsphere-custom
+sudo cp -rv /mnt/* /tmp/vsphere-custom
+sudo umount /mnt
+sudo sed -i -r 's|^(kernelopt=.*)|\1 ks=https://raw.githubusercontent.com/nmasse-itix/terraform-lab/main/vsphere/itix-ks.cfg|' /tmp/vsphere-custom/boot.cfg
+sudo sed -i -r 's|^(kernelopt=.*)|\1 ks=https://raw.githubusercontent.com/nmasse-itix/terraform-lab/main/vsphere/itix-ks.cfg|' /tmp/vsphere-custom/efi/boot/boot.cfg
+sudo dnf install genisoimage
+sudo genisoimage -relaxed-filenames -J -R -o /tmp/vsphere-custom.iso -b isolinux.bin -c boot.cat -no-emul-boot -boot-load-size 4 -boot-info-table -eltorito-alt-boot -e efiboot.img -no-emul-boot /tmp/vsphere-custom
+sudo cp /tmp/vsphere-custom.iso /var/lib/libvirt/images/
+```
+
+Then, deploy the lab.
+
+```sh
+terraform init
+terraform apply
+```
+
+## References
+
+* https://www.grottedubarbu.fr/nested-virtualization-esxi-kvm/
+* https://itsjustbytes.com/2020/12/14/kvm-esxi-7-as-a-nested-cluster/
+* https://fabianlee.org/2018/09/19/kvm-deploying-a-nested-version-of-vmware-esxi-6-7-inside-kvm/
+* http://vnews.fr/construire-un-custom-iso-de-vmware-vsphere-esxi-6/
diff --git a/vsphere/main.tf b/vsphere/main.tf
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+++ b/vsphere/main.tf
@@ -0,0 +1,21 @@
+terraform {
+  required_version = ">= 0.13"
+  required_providers {
+    libvirt = {
+      source  = "dmacvicar/libvirt"
+      version = ">=0.6.3"
+    }
+    local = {
+      source  = "hashicorp/local"
+      version = ">=2.0.0"
+    }
+    template = {
+      source  = "hashicorp/template"
+      version = ">=2.2.0"
+    }
+  }
+}
+
+output "machines" {
+  value = local.vsphere_machines
+}
diff --git a/vsphere/network.tf b/vsphere/network.tf
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+++ b/vsphere/network.tf
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+resource "libvirt_network" "lab_net" {
+  name      = var.network_name
+  mode      = "nat"
+  domain    = var.network_domain
+  addresses = [var.network_ip_range]
+  autostart = true
+  dns {
+    enabled = true
+  }
+  dhcp {
+    enabled = true
+  }
+}
diff --git a/vsphere/patch.xslt b/vsphere/patch.xslt
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index 0000000..827efe4
--- /dev/null
+++ b/vsphere/patch.xslt
@@ -0,0 +1,55 @@
+<?xml version="1.0" ?>
+<xsl:stylesheet version="1.0"
+                xmlns:xsl="http://www.w3.org/1999/XSL/Transform">
+  <xsl:output omit-xml-declaration="yes" indent="yes"/>
+
+  <!-- XSLT Identity template -->
+  <xsl:template match="node()|@*">
+     <xsl:copy>
+       <xsl:apply-templates select="node()|@*"/>
+     </xsl:copy>
+  </xsl:template>
+
+  <!-- Change the NIC model to e1000e -->
+  <xsl:template match="/domain/devices/interface[@type='network']/model/@type">
+    <xsl:attribute name="type">
+      <xsl:value-of select="'e1000e'"/>
+    </xsl:attribute>
+  </xsl:template>
+
+  <!-- Change all disks to SATA and renumber them (sda, sdb, etc.)-->
+  <xsl:template match="/domain/devices">
+    <xsl:copy>
+      <xsl:apply-templates select="@*|node()[not(ancestor-or-self::disk)]"/>
+      <xsl:for-each select="disk">
+        <disk>
+          <xsl:apply-templates select="@*|node()[not(ancestor-or-self::target | ancestor-or-self::wwn)]"/>
+          <target bus="sata" rotation_rate="1">
+            <xsl:attribute name="rotation_rate">
+              <!-- Disk is an SSD -->
+              <xsl:value-of select="'1'" />
+              <!-- Disk is an HDD (7200 RPM) -->
+              <!-- <xsl:value-of select="'7200'" /> -->
+            </xsl:attribute>
+            <xsl:attribute name="dev">
+              <xsl:value-of select="'sd'" /><xsl:number value="position()" format="a"/>
+            </xsl:attribute>
+          </target>
+        </disk>
+      </xsl:for-each>
+    </xsl:copy>
+  </xsl:template>
+
+  <!-- Hide KVM for the guest -->
+  <xsl:template match="/*">
+    <xsl:copy>
+      <xsl:apply-templates select="@*|node()"/>
+      <features>
+        <kvm>
+          <hidden state='on'/>
+        </kvm>
+      </features>
+    </xsl:copy>
+  </xsl:template>
+
+</xsl:stylesheet>
\ No newline at end of file
diff --git a/vsphere/provider.tf b/vsphere/provider.tf
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+++ b/vsphere/provider.tf
@@ -0,0 +1,3 @@
+provider "libvirt" {
+  uri = "qemu:///system"
+}
\ No newline at end of file
diff --git a/vsphere/variables.tf b/vsphere/variables.tf
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+++ b/vsphere/variables.tf
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+variable "vsphere_machine_count" {
+  type    = number
+  default = 1
+}
+
+variable "pool_name" {
+  type    = string
+  default = "default"
+}
+
+variable "volume_format" {
+  type    = string
+  default = "qcow2"
+}
+
+variable "os_volume_size" {
+  type    = number
+  default = 16 * 1024 * 1024 * 1024
+}
+
+variable "kvm_machine" {
+  type    = string
+  default = "pc-q35-rhel8.2.0"
+}
+
+variable "vmfs_volume_size" {
+  type    = number
+  default = 200 * 1024 * 1024 * 1024
+}
+
+variable "vcpu_count" {
+  type    = number
+  default = 4
+}
+
+variable "memory_size" {
+  type    = number
+  default = 8192
+}
+
+
+variable "vsphere_hostname_format" {
+  type    = string
+  default = "esx-%02d"
+}
+
+variable "vsphere_iso" {
+  type    = string
+  default = "/var/lib/libvirt/images/vsphere-custom.iso"
+}
+
+variable "network_name" {
+  type    = string
+  default = "lab"
+}
+
+variable "network_domain" {
+  type    = string
+  default = "sample.lab"
+}
+
+variable "bridge_network" {
+  type    = string
+  default = "bridge"
+}
+
+variable "network_ip_range" {
+  type    = string
+  default = "10.10.0.0/24"
+}
diff --git a/vsphere/vsphere.tf b/vsphere/vsphere.tf
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--- /dev/null
+++ b/vsphere/vsphere.tf
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+resource "libvirt_volume" "vsphere_os_disk" {
+  name   = "${format(var.vsphere_hostname_format, count.index + 1)}-os.${var.volume_format}"
+  count  = var.vsphere_machine_count
+  format = var.volume_format
+  pool   = var.pool_name
+  size   = var.os_volume_size
+}
+
+resource "libvirt_volume" "vsphere_vmfs_disk" {
+  name   = "${format(var.vsphere_hostname_format, count.index + 1)}-vmfs.${var.volume_format}"
+  count  = var.vsphere_machine_count
+  format = var.volume_format
+  pool   = var.pool_name
+  size   = var.vmfs_volume_size
+}
+
+resource "libvirt_domain" "vsphere_machine" {
+  count   = var.vsphere_machine_count
+  name    = format(var.vsphere_hostname_format, count.index + 1)
+  vcpu    = var.vcpu_count
+  memory  = var.memory_size
+  machine = var.kvm_machine
+
+  boot_device {
+    dev = ["hd", "cdrom"]
+  }
+
+  disk {
+    volume_id = element(libvirt_volume.vsphere_os_disk.*.id, count.index)
+  }
+
+  disk {
+    volume_id = element(libvirt_volume.vsphere_vmfs_disk.*.id, count.index)
+  }
+
+  cpu = {
+    mode = "host-passthrough"
+  }
+
+  disk {
+    file = var.vsphere_iso
+  }
+
+  graphics {
+    type        = "vnc"
+    listen_type = "address"
+  }
+
+  video {
+    type = "qxl"
+  }
+
+  network_interface {
+    network_id     = libvirt_network.lab_net.id
+    addresses      = [cidrhost(var.network_ip_range, count.index + 11)]
+    hostname       = format(var.vsphere_hostname_format, count.index + 1)
+    wait_for_lease = true
+  }
+
+  xml {
+    xslt = file("patch.xslt")
+  }
+}
+
+locals {
+  vsphere_machines = { for i in libvirt_domain.vsphere_machine : i.name => i.network_interface.0.addresses[0] }
+}