Is it possible to create, modify, or delete local user groups on ESXi hosts directly?

Creating, modifying, or deleting local user groups on ESXi hosts directly is not possible. ESXi hosts manage users and groups using the Local User and Group Management system, which is relatively limited. Modification of user groups is often handled through the vSphere Client, vCenter Server, or command-line utilities like ESXi Shell or SSH (if enabled).

The ESXi host has a simplified user management approach that is generally better suited for quick local user creation but does not provide comprehensive capabilities for managing user groups directly. To effectively manage user groups, enterprises typically leverage vCenter, which offers centralized user management and permissions assignment across multiple ESXi hosts. This approach ensures that many hosts can be managed under the same set of policies, enhancing security and ease of administration.

This context underlines why the assertion that local user groups can be created, modified, or deleted directly on ESXi hosts is not accurate. Using the management capabilities offered by vCenter provides a more robust and efficient user administration process.