VMware ESXi and vSphere Cluster Management

Create Virtual Machines in VMware vSphere and ESXi

Learn how to create and configure a blank virtual machine in the vSphere Web Client, including compute, storage, compatibility, guest OS, hardware, networking, and installation.

Creating a virtual machine (VM) in VMware vSphere means defining a software-based computer on an ESXi host. You select its inventory location, compute resources, datastore, virtual hardware, network, and guest operating system settings. The result is an empty VM that can be powered on and used to install an operating system.

This procedure uses the vSphere Web Client and assumes that the ESXi host is managed by vCenter Server. Exact labels can vary between vSphere releases, but the workflow follows the same planning and validation principles.

Understand the vSphere components

A virtual machine is a virtualized computer made up of configuration settings, virtual hardware, virtual disks, and a guest operating system. The VM runs on an ESXi host, which is VMware's bare-metal hypervisor.

vCenter Server centrally manages ESXi hosts, clusters, datastores, networks, and VMs. The vSphere Web Client is the browser-based interface used to perform management tasks through vCenter Server.

Datacenter: A top-level vCenter inventory container for hosts, clusters, storage, networks, and VMs.
Cluster: A group of ESXi hosts managed together for shared resources and availability features.
Resource pool: A logical boundary that allocates CPU and memory to VMs or child resource pools.
Datastore: A storage container accessible to ESXi. VM configuration files, logs, virtual disks, and related files are stored there.
Network or port group: A virtual connection point to which a VM's virtual network adapter is attached.
Guest operating system: The operating system installed inside the VM, such as Windows Server or a Linux distribution.

Plan the VM before opening the wizard

Choose a name and inventory location

Use your organization's naming convention. A useful name may identify the application, environment, location, and sequence number, such as APP01-PROD or LINUX-WEB-01. Avoid names that reveal too little about the workload or that duplicate an existing VM name.

Decide which inventory folder should contain the VM object. Inventory placement is an organizational choice used for browsing, permissions, and administration. It is separate from the datastore location where the VM's files are stored.

Choose the compute destination

Decide whether the VM should run on a standalone ESXi host, in a cluster, or inside a resource pool. A cluster can provide placement and resource scheduling capabilities, while a resource pool can apply CPU and memory reservations, limits, and shares.

Confirm that the destination has enough CPU and memory capacity, is available for new workloads, and can access the datastore and network that the VM requires. If the VM may move between hosts, all possible hosts should provide compatible hardware, datastore access, and network access.

Choose storage

Select a datastore for the VM configuration file, virtual disks, logs, snapshots, and other related files. A virtual disk is commonly stored as a VMDK, VMware's virtual disk file format.

Check free capacity, including expected growth and snapshot overhead.
Verify that the datastore is accessible from the selected host, cluster, or resource pool.
Choose storage performance appropriate for the workload.
Follow organizational storage policies for production, development, backup, and retention.

Plan the guest OS and virtual hardware

Identify the guest operating system and exact version before choosing the VM compatibility level. The guest OS selection applies VMware defaults and affects available optimization settings and supported virtual devices.

Estimate the required number of virtual CPUs, memory, virtual disk capacity, network adapters, and installation devices. Size the VM for its workload rather than assigning excessive resources. Over-sized VMs can make scheduling harder and waste host capacity.

Virtual hardware compatibility

The VM compatibility level, also called the virtual hardware version or VM version, defines which virtual hardware features are available and the minimum ESXi release that can run the VM.

Compatibility selection: ESXi 5.1 and later

Virtual hardware version: 9

Supported ESXi baseline: ESXi 5.1 or later

When to choose it: Use when the VM must remain compatible with ESXi 5.1 hosts or with a mixed environment that includes ESXi 5.1.

Compatibility selection: ESXi 5.5 and later

Virtual hardware version: 10

Supported ESXi baseline: ESXi 5.5 or later

When to choose it: Use when the VM will run only on ESXi 5.5 or later and newer virtual hardware capabilities are required.

Choosing an older compatibility level improves portability to older hosts but may prevent use of features introduced in newer vSphere releases. Choosing version 10 provides capabilities associated with that level but prevents the VM from running on hosts that do not support it.

Start the New Virtual Machine wizard

Open a browser and connect to vCenter Server through the vSphere Web Client.
Open the inventory and navigate to the appropriate datacenter, cluster, host, or other permitted inventory object.
Start the action for creating a new virtual machine.
Choose the workflow for creating a new blank VM. Do not choose cloning or deployment from a template when you need an empty VM for a new operating system installation.

The exact action label can vary, but it commonly appears as New Virtual Machine or under a create or deploy action menu.

Complete the wizard

1. Select the creation type

Choose to create a new virtual machine. This creates the VM definition and virtual hardware without copying an existing VM or template.

2. Enter the name and select the folder

Enter the planned VM name, then select the datacenter folder or inventory location. Remember that this folder controls where the VM object appears in vCenter; it does not determine where the VMDK or configuration files are stored.

3. Select a compute resource

Select an ESXi host, cluster, or resource pool. In a cluster, vSphere can use placement and resource scheduling policies to select or manage the host. A resource pool may impose reservations, limits, or shares that affect the VM's access to CPU and memory.

Before continuing, verify the following:

The host or cluster is connected and not unavailable or in maintenance mode.
The destination has adequate CPU and memory capacity.
The selected compatibility level is supported.
The destination can access the planned datastore and network.

4. Select a datastore

Choose the datastore that will contain the VM files. Compare available capacity, performance, policy requirements, and accessibility from the compute destination. If the VM is placed in a cluster, prefer a datastore reachable by every host that may run the VM.

5. Select VM compatibility

Choose the virtual hardware compatibility level based on the oldest ESXi host that must run the VM and the features the workload needs. Do not select a newer level merely because it is available if the VM must run on older hosts.

6. Select the guest operating system

Choose the guest OS family and the closest correct version. For example, select the appropriate Windows Server or Linux release rather than a generic or unrelated type. This selection helps vSphere apply suitable defaults and exposes appropriate virtual device and optimization settings.

7. Customize virtual hardware

Review and adjust the default virtual hardware. The available fields depend on the selected compatibility level and guest OS.

vCPU: Set the number of virtual processors. Begin with the workload's actual requirement and increase it when monitoring or application requirements justify the change.
Memory: Allocate enough memory for the guest OS and application workload while preserving capacity for the host and other VMs.
Virtual hard disk: Add or resize a disk and set its capacity. Confirm that the datastore has enough space for the disk and future growth. The disk is stored as a VMDK.
Virtual network adapter: Add one or more adapters as required. Select the intended network or port group and, where applicable, choose the virtual NIC adapter type supported by the guest OS and environment.
CD/DVD drive: Select a datastore ISO, client device, or other approved installation source. Make sure the device will be connected at power-on when installation begins.
USB controller: Retain or add one when the guest requires supported USB devices.
Video adapter: Review display settings when the workload requires special graphics or console behavior.
Boot options: Review firmware and boot order if the installer requires a particular boot device or if troubleshooting startup behavior.

Component: vCPU

Typical decision: Assign the number of virtual processors required by the guest OS and workload.

Considerations: Avoid unnecessary vCPUs; excessive allocation can increase scheduling difficulty and reduce overall host efficiency.

Component: Memory

Typical decision: Allocate the guest OS and application's required working memory.

Considerations: Check host capacity, reservations, limits, shares, and expected workload peaks.

Component: Virtual disk

Typical decision: Create the required VMDK capacity on the selected datastore.

Considerations: Include operating system, application, paging, logs, growth, snapshots, and storage policy requirements.

Component: Network adapter

Typical decision: Add one or more virtual NICs.

Considerations: Use multiple adapters only when the workload or network design requires them.

Component: Network or port group

Typical decision: Connect each NIC to the correct port group or distributed port group.

Considerations: Confirm VLAN, security, teaming, and target-host availability.

Component: CD/DVD installation source

Typical decision: Attach an approved bootable ISO or physical source.

Considerations: Enable connection at power-on and verify that the image is bootable.

8. Review and create the VM

Review the summary before completing the wizard. Confirm the name and inventory folder, compute destination, datastore, compatibility level, guest OS, vCPU, memory, disk, network adapters, port groups, installation source, and boot options.

Wizard stage: Creation type

Selection: Create a new blank VM

Why it matters: Creates an empty VM instead of copying an existing workload

Validation checks: Confirm that clone and template workflows were not selected

Wizard stage: Name and folder

Selection: Organizational VM name and inventory folder

Why it matters: Supports identification, permissions, and administration

Validation checks: Check naming convention and folder placement

Wizard stage: Compute resource

Selection: Host, cluster, or resource pool

Why it matters: Determines where the VM executes and which policies apply

Validation checks: Check capacity, host state, compatibility, and resource-pool limits

Wizard stage: Datastore

Selection: Accessible datastore

Why it matters: Stores configuration files, logs, VMDKs, and related files

Validation checks: Check free space, performance, policy, and host accessibility

Wizard stage: Compatibility level

Selection: VM version 9 or 10 as appropriate

Why it matters: Controls virtual hardware features and minimum ESXi support

Validation checks: Compare with all intended destination hosts

Wizard stage: Guest OS

Selection: Correct family and closest version

Why it matters: Applies suitable defaults and supported device settings

Validation checks: Confirm the planned installer matches the selection

Wizard stage: CPU and memory

Selection: Workload-appropriate vCPU and memory

Why it matters: Defines compute capacity presented to the guest

Validation checks: Check application requirements and host capacity

Wizard stage: Disk configuration

Selection: Required VMDK capacity and datastore

Why it matters: Provides guest storage and consumes datastore capacity

Validation checks: Check capacity, performance, provisioning policy, and growth

Wizard stage: Network adapter

Selection: NIC type and intended port group

Why it matters: Connects the guest to the required virtual network

Validation checks: Check port group availability and connection state

Wizard stage: Final review

Selection: Complete the wizard

Why it matters: Creates the VM definition and files

Validation checks: Recheck every summary item before selecting Finish

Select Finish to create the VM. vCenter Server creates the VM configuration and related files on the selected datastore. The VM is still empty until a guest operating system is installed.

Post-creation tasks

Open the new VM in the vSphere Web Client.
Open its VM console, which provides a remote display and keyboard interface.
Attach valid installation media, such as a bootable ISO, and connect the CD/DVD device at power-on.
Power on the VM.
Use the console to complete the guest operating system installation.
Install VMware Tools after the guest OS is operational. VMware Tools provides guest utilities and drivers that improve management, performance, and integration.
Verify that the guest recognizes the assigned CPU, memory, disks, and network adapters.
Test network connectivity and configure the guest's IP settings, DNS, hostname, and other operating-system-specific settings.

Practical example: Windows Server application VM

Suppose you are creating a small Windows Server VM for an internal application. Place the VM in the server inventory folder and select the production cluster. Choose a shared datastore that every cluster host can access. Assign the planned vCPU, memory, virtual disk, and a virtual NIC connected to the server VLAN. Attach Windows installation media, power on the VM, install Windows, and then install VMware Tools.

After installation, verify that the guest sees the expected disk and memory, that the NIC is connected to the correct port group, and that the application network is reachable. Apply the organization's operating system, security, backup, and monitoring standards before handing over the VM.

Practical example: VM for mixed ESXi versions

If a Linux VM may run on both ESXi 5.1 and ESXi 5.5 hosts, select virtual hardware version 9. Choose the relevant Linux guest OS type, and use a datastore and network available to every possible target host.

If another VM will run only on ESXi 5.5 hosts and needs capabilities available at that level, select virtual hardware version 10. This provides newer virtual hardware support but removes compatibility with older ESXi hosts.

Troubleshooting creation and startup

The selected host or cluster cannot be used

Possible causes: Insufficient CPU or memory, an unavailable host, maintenance mode, restrictive resource-pool limits, or an unsupported VM hardware version.
Checks: Review host state and available resources, inspect resource-pool reservations and limits, and select a compatible hardware level or another compute destination.

The datastore is unavailable

Possible causes: The datastore is not mounted on the selected host, lacks free capacity, or has a storage access or permission problem.
Checks: Confirm visibility from all required hosts, verify free space, check permissions and storage health, and choose a datastore reachable by the compute destination.

The VM cannot connect to the expected network

Possible causes: An incorrect port group, no matching port group on the target host, a disconnected virtual NIC, or incomplete guest network configuration.
Checks: Confirm the NIC is connected, verify its port group, check network availability on the target host, and configure the guest IP settings after OS installation.

The VM will not run on an older ESXi host

The VM's virtual hardware version may be newer than the destination host supports. Verify the ESXi versions in the environment and create or maintain the VM at a compatibility level supported by all intended hosts.

The VM powers on but does not boot the installer

Possible causes: No installation media is attached, the CD/DVD device is not connected at power-on, the boot order is wrong, or the image is not bootable.
Checks: Attach valid installation media, enable connection at power-on, review boot options, and use the VM console to observe startup messages.

Key points to remember

A VM runs on ESXi, while vCenter Server provides centralized inventory and management.
Inventory folders organize VM objects; datastores hold VM files.
The compute destination must have adequate resources and access to the selected datastore and network.
Virtual hardware compatibility controls device features and the minimum ESXi version supported.
VM version 9 targets ESXi 5.1 and later; VM version 10 targets ESXi 5.5 and later.
The guest OS selection should closely match the operating system you will install.
Finishing the wizard creates an empty VM. You must attach installation media, install the guest OS, install VMware Tools, and validate the resulting workload.

For the next administration task, review the virtual machine creation workflow alongside your organization's compute, storage, networking, and naming standards.