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How to Install Microsoft Windows Server 2016 on VMware workstation

Published: November 19, 2017 (Updated: Nov 19, 2017)
#Windows Server 2016 #VMWare Workstation #Virtualization

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Mastering Server 2016: A Beginner’s Guide to Installing Windows Server 2016 in VMWare Workstation

Hey tech enthusiasts, and welcome back to Darren’s Tech Tutorials!

If you’re ready to dive into the world of professional server environments but want a safe, isolated space to practice, virtualization is the answer. In this comprehensive guide, we’re walking through the entire process of installing Microsoft Windows Server 2016 as a Virtual Machine (VM) using VMWare Workstation 12.

Windows Server 2016 is a powerful platform, and setting it up as a VM lets you experiment, break things, and fix them—all without touching your primary operating system. Let’s get your new server lab up and running!

Prerequisites: What You Need Before We Start

To successfully follow this tutorial and create your new Server 2016 VM, you’ll need three main things:

  1. VMWare Workstation 12 or Newer: This is the virtualization software we use to host the server environment.
  2. Sufficient Host PC Resources: Ensure your host computer has plenty of free storage, at least 8GB of RAM (ideally 16GB or more), and a modern CPU capable of virtualization (most modern CPUs are).
  3. The Windows Server 2016 Installation Media (ISO): We will use the free evaluation version provided by Microsoft.

Step 1: Downloading Windows Server 2016

Before we open VMWare, you need the installation file. Microsoft offers a free 180-day evaluation copy, perfect for learning and testing.

Use the official link below to download the ISO file:

Download Link: https://www.microsoft.com/en-us/evalcenter/evaluate-windows-server-2016

Download the file and remember where you saved it—we’ll need this location shortly!

Step 2: Creating the New Virtual Machine in VMWare Workstation 12

With your ISO downloaded, it’s time to configure the virtual hardware that will host our server.

2.1 Starting the New Virtual Machine Wizard

  1. Open VMWare Workstation 12.
  2. On the VMWare home screen, click Create a New Virtual Machine.
  3. Select the Typical (Recommended) configuration option. This simplifies the process for beginners. Click Next.

2.2 Specifying the Installation Media

On the “Installer Disc Image” step, you have three options. We want to point VMWare directly to the ISO we downloaded:

  1. Select Installer disc image file (ISO).
  2. Click Browse and navigate to the location where you saved the Windows Server 2016 ISO file.
  3. Click Next.

Note: VMWare may try to automatically detect the OS and ask for a product key. Since we are using the evaluation copy, simply click Next if prompted, confirming that you will install the operating system later.

2.3 Setting Windows Version and Location

  1. Select the operating system: Choose Microsoft Windows.
  2. Select the version: Choose Windows Server 2016.
  3. Click Next.
  4. Name the Virtual Machine: Give your VM a descriptive name (e.g., Server2016-Lab-VM).
  5. Choose Location: Select where you want the virtual machine files stored on your hard drive. Choose a location with ample free space.
  6. Click Next.

2.4 Configuring Virtual Disk Size

  1. Specify Disk Capacity: For a basic lab environment, setting the maximum disk size to 60 GB is usually sufficient.
  2. Store virtual disk as a single file: For better performance and portability, select the option to Store virtual disk as a single file.
  3. Click Next.

2.5 Customizing Hardware Settings

Before clicking Finish, we need to ensure the VM has enough power to run the server OS smoothly.

  1. On the summary screen, click Customize Hardware.
  2. Memory (RAM): We recommend a minimum of 4096 MB (4 GB) for Windows Server 2016 to run comfortably. Adjust this based on how much RAM you can spare from your host PC.
  3. Processors: Increase the number of processor cores to 2 for better responsiveness.
  4. Once customizations are complete, click Close, and then click Finish on the summary screen.

Your Virtual Machine environment is now built and ready to receive the operating system!

Step 3: Installing Windows Server 2016

Now we move from configuring the virtual hardware to installing the actual Windows Server operating system.

3.1 Starting the Installation Process

  1. In VMWare, click Power on this virtual machine.
  2. The VM will boot from the ISO file you specified. Press any key if prompted to boot from CD/DVD.
  3. Wait for the Windows Server setup splash screen to appear.

3.2 Windows Setup Basics

  1. Language, Time, and Keyboard: Confirm your preferences (usually U.S. English or your local settings). Click Next.
  2. Click the large Install now button.

3.3 Choosing the Operating System Type

This is the most critical choice for a beginner’s lab environment:

  1. Select the Standard or Datacenter edition (Standard is sufficient for most labs).
  2. Crucially, select the option that includes (Desktop Experience). This provides the graphical user interface (GUI). Installing without the GUI creates a “Server Core” installation, which is managed only via command line and is much more challenging for beginners.
  3. Click Next.

3.4 Licensing and Installation Type

  1. Accept the License Terms: Check the box to accept the Microsoft Software License Terms. Click Next.
  2. Installation Type: Select Custom: Install Windows only (advanced).
  3. Where do you want to install Windows? Select the 60 GB unallocated space we created earlier. Click Next.

The installation process will now begin. Windows will copy files, install features, and reboot the VM several times. This process may take 15–30 minutes, depending on your computer speed.

3.5 Finalizing the Server Setup

  1. After the final reboot, you will be prompted to set the Administrator password. This password must meet complexity requirements (mix of uppercase, lowercase, numbers, and symbols).
  2. Enter and confirm a strong password, and click Finish.
  3. You are now at the Windows Server 2016 logon screen. Press Ctrl + Alt + Delete (or use the VMWare command in the VM menu) to unlock and sign in using the password you just created.

Congratulations! You have successfully installed Windows Server 2016 as a virtual machine.

The Next Step: Installing VMWare Tools

For optimal performance, screen resolution control, and seamless clipboard sharing between your host PC and the new VM, the first thing you should do after logging in is install VMWare Tools.

In the VMWare menu bar, go to VM and click Install VMWare Tools. Follow the prompts inside the VM to complete the installation and reboot one last time.

Ready to Build Your Network Lab!

That’s it! You have successfully deployed a fully functional Microsoft Windows Server 2016 instance inside VMWare Workstation. This robust foundation is where all great IT experiments begin—from setting up Active Directory to configuring DNS and DHCP.

What should we configure on this server next? Let me know in the comments!

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