Not one answer has yet hit the ELI5 level. Many worthy explanations have been submitted, alas aimed at a tech level. So try this:
You don’t need to know anything about VMs, finding out won’t give you any advantage, and unless you are being technical, and not just being a user, you can’t tell when you are connected to one. They aren’t magic, they are just yet another complex software thats useful to people who have to supply and manage a lot of computers.
If, on the other hand you get interested, and want to do some IT, or developing, or hacking, then by all means read the long answers. VMs are really a wonderful bit of tech. The Cloud couldn’t run without them.
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