Exploring Proxmox VE: A Practical Alternative to Hyper-V and VMware

  • This blog post is by Nexus senior engineer Graham Gray. All costs are indicative and believed correct at the time of publication (summer 2025).

As an IT consultant with extensive experience in virtualisation, I’ve spent decades deploying and managing VMware and Hyper-V solutions. Recently, due to evolving licensing structures and the increasing demand from clients for cost-effective, flexible virtualisation solutions, I’ve adopted and extensively evaluated Proxmox VE – an open-source virtualisation platform that has quickly become my preferred recommendation.

In this article, I’ll share insights into why Proxmox VE offers compelling advantages for businesses currently using VMware or Hyper-V, along with practical guidance based on my direct experience.

Nexus engineer Graham Gray
Graham Gray

Why Choose Proxmox VE?

Cost Efficiency — Practical Comparison for SMBs

Understanding licensing costs is critical for businesses choosing a virtualisation platform. Since VMware’s Broadcom acquisition, licensing has notably shifted:

  • VMware vSphere Standard is now the minimal licensing option, requiring a minimum purchase of 16 cores per CPU.
  • The per-core license costs approximately £45 per core. For example, a dual-socket server with 16 cores per CPU would cost at least £1,440 in licensing.
  • In contrast, Proxmox VE is free to use with all core features included, with optional paid enterprise support subscriptions starting at approximately €80 per CPU socket per year (roughly £70). This subscription unlocks stable enterprise repositories and professional support.

Example

Unified Management

Provides a streamlined, web-based interface to manage both KVM virtual machines and LXC containers efficiently in a single, intuitive platform.

Flexible Storage and Networking

Supports diverse storage solutions including ZFS, Ceph, NFS, iSCSI, and local storage.

Advanced networking features including VLANs, and network bonding.

Robust Clustering and High Availability

Simplifies the setup of scalable clusters with built-in high availability (HA) capabilities, ensuring maximum uptime and resilience.

Community and Enterprise Support

Combines a vibrant, knowledgeable open-source community with professional enterprise support, ensuring reliable operations.

Migrating from VMware: A Simplified Experience

Proxmox VE excels in its ability to simplify migrations from VMware environments:

Easy VMware Integration

  • ESXi hosts can be directly integrated into the Proxmox management console, enabling seamless VM migration.
  • Proxmox analyses and pre-configures VM settings automatically during import, greatly reducing manual effort.

Native VMware Paravirtualisation Support

  • Direct support for VMware paravirtualised hardware such as VMXNET3 network adapters and PVSCSI storage controllers, ensuring minimal post-migration issues.
  • Direct support for VMware VMDK virtual disk formats.

Step-by-Step Migration Overview

  1. Connect VMware Host: Enter VMware ESXi credentials directly into the Proxmox management console.
  2. Select and Import VMs: Choose the desired VMs from within the Proxmox interface.
  3. Automatic Configuration: Proxmox handles the configuration of CPU, memory, storage, and networking.
  4. Immediate Operational Readiness: Imported VMs typically start without additional configuration.
  5. Post Migration Optimisation: Deploy VirtIO and QEMU drivers for optimal integration.

Practical Migration Advice

  • Perform initial migrations with less-critical systems to validate compatibility.
  • Verify network and storage configurations beforehand to avoid potential disruptions.
  • Utilise available community resources and professional support for complex VM setups.
  • Rotate your phone to see a comparison table in widescreen

Feature

Proxmox VE

VMware (vSphere)

Hyper-V

Licensing

Free! Open-source with optional paid support

Costly per CPU/core licenses

Included with Windows Server

Management Interface

Excellent (ZFS, Ceph, etc.)

Extensive (requires licenses)

Included with Windows Server

Storage Flexibility

Free! Open-source with optional paid support

Costly per CPU/core licenses

Moderate (Storage Spaces Direct)

Container Support

Native LXC

Limited via Tanzu

Limited Windows Containers

GPU Passthrough

Efficient and straightforward

Effective, requires licensing

Limited, more complex

Veeam Backup & Disaster Recovery Support

We primarily recommend Veeam as the backup and disaster recovery solution for protecting client environments. While Proxmox VE support is still maturing compared to VMware or Hyper-V, Veeam already provides strong integration capabilities:

Direct Integration

  • Create backups of Proxmox VE VMs and store them in backup repositories.
  • Create VeeamZIP backups of Proxmox VE VMs.
  • Restore VMs from Proxmox VE, VMware ESXi, Microsoft Hyper-V, Nutanix AHV, and oVirt KVM backups into the Proxmox environment and vice versa.
  • Restore VMs from Microsoft Azure, AWS, and Google Cloud backups to Proxmox VE.
  • Restore physical machines using Veeam Agents into Proxmox VE.
  • Instant Recovery of Proxmox VMs to VMware vSphere and Hyper-V environments.
  • Restore application items (Active Directory, Exchange, SharePoint, Oracle DB, SQL Server).
  • Export disks to VMDK, VHD, and VHDX formats, or mount them in read-only mode.

Agent-based Backup

  • Deploying Veeam agents inside Proxmox VMs ensures comprehensive, application-aware backup protection.

Flexible Backup and Restore

  • Granular file-level restore and complete system recovery capabilities.

Off-site Backup and Disaster Recovery with Nexus Cloud Connect

  • Nexus Cloud Connect Backup (NCCB): Our NCCB services offer robust, seamless off-site backup integration for Proxmox VE environments, ensuring comprehensive protection for critical data and virtual machines.
  • Nexus Cloud Connect Backup & Disaster Recovery (NCCBDR): Currently, NCCBDR does not support replication for Proxmox VE. As Veeam’s integration with Proxmox evolves, we anticipate replication functionality in future updates. Until then, customers requiring replication are advised to maintain their existing hypervisor.

Practical Considerations for Veeam Integration

  • Regularly test backup and restore processes for critical Proxmox VMs.
  • Maintain updated Veeam agents to ensure ongoing compatibility and performance.

Real-World Benefits Observed

  • Cost Reduction: Significant savings on licensing without sacrificing performance or features.
  • Simplified Management: Easier daily operations through Proxmox’s unified management platform.
  • Flexible Deployments: Seamlessly mix VMs and containers, optimising resource utilisation.

Next Steps

Interested in exploring Proxmox VE further? Reach out – I’m here to discuss how Proxmox can specifically benefit your business, offering tailored migration strategies and ongoing support to ensure a seamless transition.

TL;DR

Proxmox VE is an open-source virtualisation platform offering considerable cost reductions, simplified management, seamless VMware migration, comprehensive Veeam backup integration, and robust off-site backup through Nexus Cloud Connect services – an ideal choice for businesses seeking cost-effective, flexible, and reliable virtualisation solutions.

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