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Docker vs a VM - How are they different?

I am very familiar with VMs and virtulization. However, I have only heard about Docker (never used it) and would like to grasp the idea and concept.

I understand Docker creates 1 or more individual "worlds" similar to VMs, but uses a lot less resources?
Can you explain more about docker as well as how it is difference from VMs (vmware, Xen, KVM).
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Scott Silva
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