Nano Server is a new installation option in Windows Server 2016. It is administered remotely and optimized for hosting in Private Clouds and Datacenters and for running applications that are developed by using cloud application patterns.
It can not be installed directly on the host machine. It is installed as a VHD or WIM file built by Windows PowerShell cmdlets. Nano Server can be installed with either Standard or Datacenter edition and can select various Packages that are available as Server roles and features as below:
1. Hyper-V role
2. Failover Clustering
3. File Server role
4. DNS Server role
6. Host support for Windows Containers