Nano Server has been optimized for .NET Core applications.
Nano Server is even smaller than the Windows Server 2016 version. Windows PowerShell, .NET Core, and WMI are no longer included by default, but you can include PowerShell and .NET Core container packages when building your container.
There is no longer a servicing stack included in Nano Server.
Microsoft publishes an updated Nano container to Docker Hub that you redeploy.
You troubleshoot the new Nano Container by using Docker.
Two years ago, Microsoft execs were basically saying Nano Server was the future of Windows Server. Things didn't quite play out that way. Finn noted that because Nano Server was so completely refactored, code had to be written expressly to run on Nano Server.
But with the coming 1709 do-over, Nano Server will be focused entirely on running in containers.What this means from a deployment standpoint, Finn explains:
"Microsoft is removing all physical features from Nano Server. That means that drivers will be removed. Hyper-V will be removed. SOFS (Scale Out File Server) will be removed. Failover Clustering will be removed. In short, you will not be able to install Nano Server on a physical virtual machine. In fact, you will not be able to install Nano Server into a VHD either. There will be no virtual machine support."