This seems to be completely undocumented which is why I’m writing this … It is possible to boot a Linux guest (Fedora in this case) from a live CD on a website without downloading it. I’m using our favourite flexible NBD server, nbdkit and virt-install.
First of all we’ll run nbdkit and attach it to the Fedora 29 live workstation ISO. To make this work more efficiently I’m going to place a couple of filters on top — one is the readahead (prefetch) filter recently added to nbdkit 1.12, and the other is the cache filter. In combination these filters should reduce the load on the website and improve local performance.
$ rm /tmp/socket $ nbdkit -f -U /tmp/socket --filter=readahead --filter=cache \ curl https://download.fedoraproject.org/pub/fedora/linux/releases/29/Workstation/x86_64/iso/Fedora-Workstation-Live-x86_64-29-1.2.iso
I actually replaced that URL with a UK-based mirror to make the process a little faster.
Now comes the undocumented virt-install command:
$ virt-install --name test --ram 2048 \ --disk /var/tmp/disk.img,size=10 --disk device=cdrom,source_protocol=nbd,source_host_transport=unix,source_host_socket=/tmp/socket \ --os-variant fedora29
After a bit of grinding that should boot into Fedora 29, and you never (not explicitly at least) had to download the ISO.
To be fair qemu does also have a curl driver which virt-install could use, but nbdkit is better with the filters and plugins system giving you ultimate flexibility — check out my video about it.