For years VMware was the standard for virtualised servers – even in small companies. Since the acquisition by Broadcom at the end of 2023, the licensing model has changed fundamentally: perpetual licences were replaced by subscriptions and products bundled into larger packages. Many SMEs are facing significantly higher running costs and are looking for alternatives.
What is Proxmox VE?
Proxmox Virtual Environment is an open-source virtualisation platform from Austria. It combines virtual machines and containers in one web interface and includes much of what costs extra elsewhere:
- Clustering and high availability: if a server fails, the virtual machines restart automatically on another one.
- Distributed storage with Ceph: data is stored redundantly across several servers, without an expensive central storage system.
- Integrated backup with Proxmox Backup Server, including deduplication and encryption.
- Live migration of virtual machines while they are running.
What does Proxmox cost?
The software itself is free. For production use we recommend a subscription per server. It provides access to the stable update channel and vendor support – at a fraction of previous VMware costs.
How does a migration work?
- Inventory: which virtual machines are running, with which resources and dependencies?
- Build the target: set up Proxmox on new or existing hardware, configure network and storage.
- Test migration: move a non-critical machine and check it thoroughly.
- Migrate step by step: the remaining systems follow on schedule, usually outside working hours. Proxmox includes an import wizard for VMware machines.
- Set up backup and monitoring, and only shut down the old environment after a successful test phase.
Who benefits from switching?
Especially companies with two to ten servers that want to cut licence costs and stay independent. If you run software with an explicit VMware certification, check with the vendor first.
Conclusion
Proxmox is mature, stable and an ideal fit for SMEs. We run Proxmox and Ceph clusters ourselves and are happy to support your migration. More under servers & virtualisation.
Frequently asked questions
Is Proxmox suitable for production use?
Yes. Proxmox VE has been used by companies worldwide for many years and also offers vendor support with a subscription.
Can I reuse my existing hardware?
In most cases yes, provided it is still powerful enough and supported by the manufacturer.
How long does a migration take?
For a typical SME environment with a few servers, often just a few days, spread across times outside working hours.
