

Proxmox can work with VMs and LXC containers.
When you need to always have resources reserved specifically for a given task, VMs are very handy. VM will always have access to the resources it needs, and can be used with any OS and any piece of software without any preparations and special images. Proxmox manages VMs in an efficient way, ensuring near-native performance.
When you want to run service in parallel with other with minimal resource usage on idle, you go with containers.
LXC containers are very efficient, more so than Docker, but limited to Linux images and software, as they share the kernel with the host. Proxmox allows you to manage LXC containers in a very straightforward way, as if they were standalone installations, while at the same time maintaining the rest behind the scenes.


No worries, answer anytime :)
Since LXC works on top of the Linux kernel, anything that works with it can be easily used as an image. For example, you can just throw any distribution .iso into it, and it will handle it as a container image. Proxmox does all the interim magic.
Say, you want to make a container with programs running on Debian. You take the regular Debian .iso, the one you use to install Debian on bare metal or VM, feed it to Proxmox and tell it to make an LXC container out of it. You specify various parameters (for example, RAM quotas) and boom, you got a Debian LXC container.
Then you operate this container as a regular Debian installation: you can SSH/VNC into it and go from there. After you’ve done setting everything up, you can just use it, or export it and use somewhere else as well.