To test/install a new VM level, I'd use a secondlevel VM system, no
need to devote an LPAR to it.  I still find it easier that one can use
the host level VM; the main reasons::
- to provide the network to be able to log on to the second-level VM:
  -- no access to the HMC required to start it up
  -- even if TCP/IP in the secondlevel fails, I have access
- the secondlevel system can easily get (R/O) access to selected
  minidisks of the host VM with a simple CP LINK command
  what enables fixing errors in the seciondlevel, and facilitates
  preparing put in production.

However, testing Linuxes (or other guests) in a secondlevel VM system,
would incur high CPU overhead.

I used such a setup the 20 years I spend with my customer, but I
didn't have anything else than CMS users, my SW test & installation VM
system ran as guest under the main VM production system.  It never
caused problems.  All sysprogs used this test system to install SW.

-- 
Kris Buelens,
IBM Belgium, VM customer support

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