Selfhosted
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It's already all virtualized, so from customer perspective, advantages of virtualization aren't there (single box, maximizing use of local resources, etc).
Wouldn't you be able to do containers in a Linux VPS though? To the host, it's just a virtualized Linux, from Linux' perspective, those containers are local resources.
Looks like you'd still need virtualization.
Docker desktop is not what most people on Linux are using. They're using docker engine directly, which doesn't run in a vm, and doesn't require virtualization if you use the same kernel inside the containers.