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Recall that the Java Runtime is also called the Java Virtual Machine (JVM). This is because java code cannot be run directly on the processor. The JVM running natively on the processor executes the Java Byte Code. So it fits in the definition of an virtual machine.
DVM is the anroid implementation of the JVM. It is not100% compliant with the Java Standard but the concept is the same. Java based Android apps are compiled into byte code which is executed by the DVM running natively on the processor.
Having said that, Android also provides the Native Development Kit (NDK) where you can write code in C++ running directly on the processor bypassing the DVM.
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