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In a previous question, i was looking for a way to execute VMware without installing a window manager or desktop environment. It proved difficult and I was curious if I am over complicating a solution to my end goal with my Arch Linux installation. My end goal is to have the most light weight host operating system possible, with the ability to virtualize Windows and Linux guest operating systems. I do not want to partition multiple drives and use a multi-boot setup because this wouldn't allow me to have 2 guests open and swap between the two at any time, including files.

Is there a simpler or better way to achieve this or is my previous question a step in the right direction?

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There was a comment on your other question that said to use a hypervisor (i.e. instead of installing an OS directly). Do that. Then install Arch, Windows, and everything else as VMs from the hypervisor.

The hypervisor is your base operating system, and it's only a VM host. That will give you the best performance possible for each of your VMs running inside it, and it also gives you the ability to switch between VMs quickly at runtime.

VMware's hypervisor is called vSphere, but there are other hypervisors available if you aren't wedded to VMware.

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