That's basically correct. But the more general problem is that engineers simply lost the ability to succinctly package applications and their dependencies into simple to distribute and run packages. Somehow around the same time Java made .jar files mainstream (just zip all the crap with a manifest), the rest of the world completely forgot how to do the equivalent of statically linking in libraries and that we're all running highly scheduled multithreaded operating systems now.
The "solution" for a long time was to spin up single application Virtual Machines, which was a heavy way to solve it and reduced the overall system resources available to the application making them stupidly inefficient solutions. The modern cloud was invented during this phase, which is why one of the base primitives of all current cloud systems is the VM.
Containers both "solved" the dependency distribution problem as well as the resource allocation problem sort of at once.
The "solution" for a long time was to spin up single application Virtual Machines, which was a heavy way to solve it and reduced the overall system resources available to the application making them stupidly inefficient solutions. The modern cloud was invented during this phase, which is why one of the base primitives of all current cloud systems is the VM.
Containers both "solved" the dependency distribution problem as well as the resource allocation problem sort of at once.