The VM-Series firewall now supports virtual systems only with 
flexible license and with 
one
                virtual system by default. Virtual systems are separate, logical firewall instances
                within a single physical Palo Alto Networks firewall. Rather than using multiple
                firewalls, managed service providers and enterprises can use a single pair of
                firewalls (for high availability) and enable virtual systems on them. The virtual
                systems are easier to manage coexisting within a firewall. The additional benefits
                of virtual systems include improved scalability, segmented administration, and
                reduced capital and operational expenses. For more information, see 
Benefits of Virtual Systems and 
Virtual System Components and
                Segmentation.
The virtual system support on the VM-Series firewall is available on PAN-OS
                version 11.1.3 and later. You must have a virtual system license to support multiple
                virtual systems on the VM-Series firewall. Purchase additional licenses based on
                your requirement up to a maximum number supported on a particular Tier.
Use a flexible VM-Series firewall license and Tier 3 or Tier 4 instances
                supporting a minimum of 16 vCPUs or more. The VM-Series firewall in Tier 3 instance
                supports a maximum of 25 virtual systems. The VM-Series firewall in Tier 4 instance,
                supports a maximum of 100 virtual systems. 
    
    The virtual system support on VM-Series firewall is introduced in PAN-OS 11.2.0,
                    and available in PAN-OS version 11.1.3 and later on KVM platform only.