When VMware changed its pricing and licensing structure, many IT teams started asking a simple question: Do we have to stay with VMware?

For us, the answer was no. After running VMware for years, we've transitioned to Proxmox, an open-source hypervisor with comparable features, strong performance, and more flexibility in how it's deployed and supported.

Here's what we've learned so far.

Why We Moved Away from VMware

Licensing changes made VMware harder to justify, especially for teams managing multiple hosts or clustered infrastructure. We started looking for platforms that offered the same core capabilities without tying us to a proprietary cost model.

Proxmox checked all the boxes; not just technically, but operationally. It's a mature, open-source solution that gives us full control over our virtualization stack. We had already covered similar cost and infrastructure challenges in several of our case studies, so this decision aligned with the patterns we were seeing across multiple environments.

What Proxmox Actually Offers

Proxmox is based on the KVM hypervisor and runs on Debian Linux. From a usability and capability standpoint, it's close to feature parity with VMware for most environments. Here's what stood out to us:

  • Live Migration. Move running VMs between hosts without disruption.

  • Clustered Storage (Ceph). Integrated support for Ceph, allowing shared, hyperconverged storage across nodes when properly configured.

  • Snapshot Support. Snapshot and restore VMs as needed.

  • Veeam-Compatible. Veeam works with Proxmox using agent-based backups or storage-level workflows, but it doesn't have native hypervisor integration like it does with VMware or Hyper-V.

  • Web-Based Management. No separate console software required.

  • Tag-Based Organization. Add multiple tags to VMs for filtering and grouping.

  • Role-Based Access and MFA. Built-in multi-factor authentication and user/group management.

  • No vCenter Equivalent Needed. Proxmox uses a distributed management model, so you can manage the entire cluster from any node.

Proxmox is straightforward to manage, especially for teams familiar with Linux, and it offers more flexibility in how you architect clusters and manage updates. As we expanded our environment, we also looked back at our company's accolades and awards because they reflect years of experience designing stable, scalable networks. That background made the migration process smoother and more informed.

A Few Things to Consider

Like any platform, Proxmox isn't perfect. Here are a few trade-offs:

  • Limited Vendor Support. Some virtual appliances (e.g. Cisco UC) are only supported on VMware. We still maintain VMware hosts for those.

  • CLI Required for Advanced Config. Some tasks (like iSCSI multi-pathing) still require CLI.

  • GUI is Practical, Not Polished. If you're used to the VMware interface, Proxmox may feel more utilitarian.

  • Cluster Management is Host-Based. There's no single-pane-of-glass VM like vCenter, but you can manage the whole cluster from any node.

That said, none of these have been blockers for our deployments.

When Hyper-V Might Make Sense

We also deploy Microsoft Hyper-V in certain cases, especially for very small environments where:

  • Only one or two hosts are needed

  • All workloads are Windows-based

  • Shared storage isn't required

It's straightforward to manage and fully integrated with Windows Server, but there are drawbacks:

  • No built-in clustering without more complex (and less stable) setups

  • Requires monthly reboots for patching and stability

  • No central web management, only desktop-based tools

  • Less stable than Linux over long uptimes

Hyper-V still has a role just not in every situation.

Our Direction with Proxmox

We've moved our internal production workloads to Proxmox where supported. That includes clustered storage, backups with Veeam, and multi-host environments.

Where vendor compatibility requires VMware, we maintain dedicated hosts for those workloads but everything else is running on Proxmox.

The switch has allowed us to operate more efficiently, simplify licensing, and scale environments without taking on added complexity.

Is Proxmox Right for You?

If you're evaluating your options or looking for a VMware alternative, Proxmox is a serious contender. It's not just for labs or hobbyists, it's running production workloads in businesses, municipalities, and managed environments worldwide.

It's stable, capable, and built on open technologies that aren't controlled by a single vendor.

If you have in-house Linux experience, you'll hit the ground running. And even if you don't, there are managed support and training options available to get started.

For readers who want to learn more about how we approach infrastructure decisions, you can explore our case studies for real-world examples of similar projects.

If you ever have questions or want to talk through a scenario, feel free to reach out through our contact page.

We're here to help

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IP Consulting is an experienced managed service provider helping organizations since 2006. Our expertise in compliance and cybersecurity positions us well to help during this massive shift in federal contracting policies. Read through our case studies to hear real world outcomes.