Rahim,
If you load and run VM/370 as the primary OS, then you can run multiple operating systems under it, each in their own "virtual machine."? You could run DOS/360, DOS/VS, OS/360 (MFT or MVT, your choice), or OS/VS1 or MVS 3.8J ...
And of course you can also have multiple users signed on to VM running CMS... all at the same time.
Where do you think "LPARs" came from originally?? :-)
Hope that helps,
Mark S. Waterbury