VM: Using virtual machine (VM) software, for example, Ubuntu can be installed inside a Windows. And they would both run at the same time. It is like building a PC, with its core components like CPU, RAM, Disks, Network Cards etc, within an operating system and assemble them to work as if it was a real PC. This way, the virtual PC becomes a “guest” inside an actual PC which with its operating system, which is called a host.
Container: It’s same as above but instead of using an entire operating system, it cut down the “unnecessary” components of the virtual OS to create a minimal version of it. This lead to the creation of LXC (Linux Containers). It therefore should be faster and more efficient than VMs.
Docker: A docker container, unlike a virtual machine and container, does not require or include a separate operating system. Instead, it relies on the Linux kernel’s functionality and uses resource isolation.
Purpose of Docker: Its primary focus is to automate the deployment of applications inside software containers and the automation of operating system level virtualization on Linux. It’s more lightweight than standard Containers and boots up in seconds.
(Notice that there’s no Guest OS required in case of Docker)