SCVMM can use an existing virtual machine as a source for future virtual machines. The source in this case can reside on a virtual machine host or on the library server. Creating a virtual machine from a virtual machine is referred to as cloning although the 'New VM' wizard experience does not refer to cloning directly. It simply lists 'virtual machine' as a source type.
Cloning a virtual machine involves copying the virtual hard disks, any memory state, and associated configuration files to the host. The source is not deleted or modified. To clone a virtual machine, it must be in a powered-off state or saved state if it is located on a virtualization host. Virtual machines in the library are in a valid state for cloning. Cloning is also supported for virtual machines with snapshots.
Cloning Virtual Machine Identity
Note that a cloned virtual machine is an identical copy of the source, including Active Directory identity, SID, computer name, and MAC address statically assigned to the virtual network adapters. If both virtual machines are powered on and connected to the same network, you will have two identical computers potentially communicating on the same network. Please plan and account for this accordingly.
Mike Briggs | Senior Support Escalation Engineer