It's clear that the industry best practice is to use a real time source, but 
there is a flip side: If you deviate from the industry best practice, how much 
do you risk? When instructed to deviate from best practice, should you be upset 
and insist that your boss put the request in writing, creating friction between 
yourself and him/her? Should you refuse to do it completely? Should you just 
roll with it?

If you have a specific need, then it's important to cater to that need, and you 
might have to insist against deviation from best practice. But if instead, all 
you have to worry about is AD remaining functional, and approximate correct 
timestamps on files and such, and users knowing the correct time to show up at 
meetings, then your need is much less strict.

I hear people on this list referring to "unstable time source" and "false 
ticker." This is a valid concern, sort-of. In reality, your guest machines are 
no better at tracking time than the VM time server is, so when there's any 
deviation between the client and your time server, it doesn't result in a false 
ticker. The way you get a false ticker is when you have configured several time 
servers, and some of them agree with each other by quorum, but there is an 
outlier. In that case, the clients still get the correct time, but the one 
outlier server needs to be corrected.

There is something to be said for anecdotal evidence, when there's a lot of it. 
I've seen many dozens of environments where AD is run in virtual servers, which 
get their time from the internet (non-local stratum 2), and AD serves time to 
the clients on the LAN without noticeable problems. Sure the time may drift a 
few seconds in either direction, but again - unless you have a specific need, 
that's good enough for general use.

Most environments don't have a dedicated stratum 1 time source, and most AD is 
run on VM's.

In those many dozen environments, I've seen many hundreds of VM's running as 
guests on peoples' laptops. Most common is the windows VM running inside 
someone's macbook. This introduces yet another level of VM time-fuzziness, and 
yet again, I've never seen it cause a problem, because the only requirements in 
those environments have been to keep AD running, and clients operational, and 
users showing up to meetings at the right time.

I have some further anecdotal evidence: I have actually seen a situation or 
two, where the AD server was no longer able to get time from the internet (due 
to firewall change - once hardware, and once software). So the AD time source 
slowly drifted off, and all the clients slowly followed. We discovered when a 
human noticed, "Why does my laptop say 4:05, when my phone says 4:13?" So then 
we restored the ability for AD to follow the internet, and AD slowly adjusted 
back to the right time, and all the clients slowly followed.

Nevermind stratum 1. That's a VM client, following a VM server, following a 
non-local stratum 2 time source. It's about as bad as you can get, but the 
problem was caused by firewall blockage, and the behavior of the system was 
about as ideal as you can get, once the firewall problems were corrected.

Unless you have a specific need, in this case, the risk of deviation from best 
practice is pretty low.

Further evidence: Despite trying to demonstrate a problem with this, to prove 
your boss wrong, you couldn't demonstrate a problem.
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