I want to set up Ubuntu LXC containers. Is there a practical difference between the
I only have a single physical server running 12.04.
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Ubuntu template - uses debootstrap to create the new container and hence downloads and installs .deb packages to create the initial chroot.
Ubuntu-Cloud template - downloads preinstalled cloud image and unpacks it.
Ubuntu template is closer to a standard ubuntu-server installation. The cloud images have smaller footprint than ubuntu-server installtion and has hooks to launch it with cloud-init and juju.