Thanks for you suggestion. ISO support is something we’re looking at, although importing a disk image for an OS that Google does not publish an image for is already possible, through the process of creating your own image 1. Note that existing ISO images cannot run without first being modified to include the necessary OS drivers to support GCE’s virtual hardware devices (at least disk and networking). It may not be the case that all Linux distributions can support those.
However: we would not implement this for the purpose of allowing customers to violate Microsoft licensing, because we cannot legitimately support scenarios that Microsoft has disallowed. There is currently no available option for anybody to run Microsoft Desktop OSs on any public multi-tenant cloud that we are aware. You have to use dedicated hardware.
Thanks for the suggestion, this is something we’d certainly like to investigate in the future.
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