What changed at VMware
After acquiring VMware, Broadcom fundamentally changed how it sells at the end of 2023. Subscriptions replaced perpetual licences with maintenance, the offering was consolidated into a few bundles (for example VMware Cloud Foundation and vSphere Foundation) and pricing is charged per CPU core. A minimum of 16 cores is charged per processor. The partner programme also changed, so many organisations switched providers or received very different quotes.
For environments with modern many-core processors, and for companies that only used basic features, this often meant noticeably higher annual costs. That is why more and more organisations are looking for a VMware alternative. The most frequently named is Proxmox VE. For a rough cost comparison, use the calculator on this page.
What is Proxmox VE
Proxmox Virtual Environment is an open-source virtualisation platform developed by the Austrian company Proxmox Server Solutions. It is built on Debian Linux, the KVM hypervisor for virtual machines and LXC for containers. Management is through a web interface, the command line or an API.
- high-availability clusters and live migration of virtual machines,
- built-in Ceph distributed storage and support for ZFS, NFS, iSCSI and other storage types,
- software-defined networking (SDN) and a built-in firewall,
- backup with Proxmox Backup Server or third-party solutions such as Veeam,
- an import wizard for virtual machines directly from ESXi.
The software is free. The subscription is paid per CPU socket per year and includes access to the stable update repository and, depending on the tier, vendor technical support. The number of cores does not affect the cost.
Proxmox vs VMware: feature and cost comparison
| Area | VMware vSphere (Broadcom) | Proxmox VE |
|---|---|---|
| Licensing model | Per-core subscription, minimum 16 cores per processor | Open source, optional subscription per processor |
| Hypervisor | ESXi | KVM (and LXC for containers) |
| High availability, live migration | Yes (HA, vMotion) | Yes (HA, live migration) |
| Software-defined storage | vSAN (depending on bundle) | Ceph, ZFS |
| Automatic workload balancing | DRS, mature and widely used | Basic options, depending on version; extra automation is often needed |
| Ecosystem and integrations | Very broad, many certified solutions | Growing, open API, support from leading backup solutions |
| Skills on the market | Widespread | Based on Linux and KVM; the team needs Linux skills |
Proxmox VE is not a drop-in replacement for every part of the VMware ecosystem. If you use NSX for microsegmentation, VMware Horizon for virtual desktops or Aria tools for automation, you will need separate solutions for those functions.
How to calculate TCO
Comparing licence prices is not enough. Total cost of ownership (TCO) over three to five years includes:
- subscriptions: for VMware the number of licensed cores times the price per core, for Proxmox the number of processors times the price of the support tier,
- migration: a one-off cost for planning, testing, transfer and adaptation,
- backup: often similar on both platforms if you stay with the same vendor,
- skills and labour: team training and any external support,
- hardware and storage: a good moment to review them, but not necessarily required.
It is important to understand how hardware affects the result. Because VMware is charged per core and Proxmox per processor, the gap grows with core count. A server with two 32-core processors means 64 licensed cores on VMware and two subscriptions on Proxmox. For processors with fewer than 16 cores, VMware still charges 16 cores per processor, so smaller environments cannot avoid the minimum. Consolidating onto fewer, more powerful servers therefore has a different financial effect on each platform.
The calculator covers the first three items. All default prices are assumptions: enter the VMware price from your own quote and check Proxmox subscription prices on the vendor site.
How migration works
- Environment inventory. Virtual machines, operating systems, dependencies, storage, networks and the VMware features you actually use.
- Architecture design. Cluster size, storage (Ceph, ZFS or an existing SAN), networks and backup.
- Pilot. Move less critical servers, verify performance and recovery procedures.
- Phased migration. Move in groups during agreed service windows, install VirtIO drivers and verify operation.
- Handover to operations. Monitoring, updates, documentation and team training.
In most environments, migration can be done with relatively short interruptions of individual services. Critical systems with high availability requirements need to be planned separately.
Backup, security and support
When changing a virtualisation platform, three areas deserve particular thought that a licence comparison does not show.
Backup. Veeam Backup & Replication supports Proxmox VE, so organisations that already use Veeam can keep the same procedures, retention and immutable copies. The alternative is Proxmox Backup Server, which provides incremental backups with deduplication and encryption. Either way, test the restore of whole virtual machines and individual files before migrating production systems.
Security and compliance. The hypervisor is a critical part of the infrastructure. Arrange regular updates from the stable repository, separate management access, multi-factor authentication for administrators, central event logging and network segmentation. For entities in scope of NIS2 these measures are part of mandatory risk management, see the guide NIS2 directive.
Support. Proxmox subscription tiers differ in the number of support tickets and response times. For production environments in mid-sized and large companies, a combination of the vendor subscription and a local partner who knows your environment and works in your time zone and language makes sense.
Phasing. You do not have to switch all at once. A common path is to use a new Proxmox VE cluster first for development and test environments, then for less critical production systems and only then for core applications, once the team has gained experience.
When switching makes sense
Moving to Proxmox VE generally makes sense if you mostly use basic virtualisation, have many cores per processor, your VMware contract is expiring and you have or can build Linux skills. Be cautious in environments that depend heavily on NSX, Horizon or software certifications that require VMware.
Humanfrog is a Proxmox and Veeam Silver partner. We help with environment assessment, architecture design, migration and operational support, including in TIER III data centres. To validate the calculation against your own environment, talk to us.
