Choosing a server virtualization platform is one of the most critical decisions in IT infrastructure management. Since Broadcom’s acquisition of VMware in 2024, the virtualization market has been in upheaval. With significant licensing changes, many organizations are now asking: “Should we stick with our current platform, or is it time to look for alternatives?”
This article provides a thorough comparison of the three most widely used virtualization platforms: VMware vSphere, Microsoft Hyper-V, and Proxmox VE. We’ll cover the latest licensing policies, actual costs, feature differences, and help you determine which platform fits your specific needs.
1. What Is a Virtualization Platform and Why Does It Matter?
Virtualization allows you to run multiple virtual machines (VMs) on a single physical server. In simple terms, one physical machine can operate as several independent computers simultaneously.
Why virtualization matters:
- Cost reduction: Significantly lower hardware acquisition, power, and cooling costs
- Resource efficiency: Better utilization of CPU, memory, and storage
- Operational flexibility: Easy VM creation, cloning, migration, and backup
- Test environments: Quickly spin up isolated test environments without affecting production
- Disaster recovery: High availability (HA) and live migration minimize service downtime
All three platforms deliver these core capabilities, but they differ significantly in approach and cost structure. Let’s examine each one.
2. VMware vSphere: The Industry Standard Facing Turbulent Times
Current State of VMware
VMware vSphere has long been synonymous with enterprise virtualization. Its stability and feature-rich platform made it the backbone of countless data centers worldwide. However, Broadcom’s acquisition of VMware in November 2023 changed everything.
Key Changes After the Broadcom Acquisition
End of perpetual licenses: Starting in early 2024, VMware completely discontinued perpetual license sales. Only subscription models are now available. If you have existing perpetual licenses, you can continue using them, but support contract renewals are no longer possible—eventually forcing a subscription transition.
Product bundling: VMware consolidated over 168 products into just 4 bundles.
| Bundle Name | Includes | Target Use Case |
|---|---|---|
| VMware Cloud Foundation (VCF) | vSphere + vSAN + NSX + Aria | Large-scale software-defined datacenters |
| VMware vSphere Foundation (VVF) | vSphere + vSAN + Aria | Mid-size virtualization environments |
| VMware vSphere Standard (VVS) | Core vSphere features | Small environments |
| VMware vSphere Enterprise Plus (VSEP) | Full vSphere feature set | Advanced feature requirements |
Per-core licensing: VMware shifted from per-socket (CPU) licensing to per-core licensing. A minimum of 16 cores per CPU applies—so even an 8-core CPU gets billed as 16 cores.
The 72-core minimum attempt and reversal: In early 2025, Broadcom attempted to enforce a 72-core minimum purchase per order. This meant that even if you only needed 20 cores, you’d have to buy 72. This policy was devastating for small environments and Edge/ROBO deployments, triggering strong pushback from customers and partners. Broadcom eventually reversed the policy, but the attempt itself revealed their direction—and concerns remain.
How Much Have VMware Costs Increased?
The honest answer: it varies wildly. Some customers report cost increases of 3x to 15x compared to previous pricing. One UK educational institution saw their annual costs jump from £40,000 to over £500,000.
Smaller environments are hit hardest. Customers who previously only needed vSphere now often must purchase bundles that include vSAN or NSX—features they don’t actually need.
VMware Pros
- Proven stability: Over 20 years of history and enterprise-level validation
- Rich ecosystem: Excellent compatibility with third-party backup, monitoring, and security solutions
- Advanced features: Mature capabilities like DRS, HA, and Fault Tolerance
- vMotion: Highly reliable live migration with zero downtime
- Technical support: Professional support and comprehensive documentation
VMware Cons
- Dramatic cost increases: Subscription costs have risen significantly post-acquisition
- Forced bundling: Often required to purchase bundles with features you don’t need
- Shrinking partner ecosystem: Authorized partners reduced from 4,500+ to a few hundred
- No more free ESXi: The previously available free ESXi Hypervisor is discontinued
Official Resources
- VMware by Broadcom: https://www.vmware.com
- VMware Documentation: https://docs.vmware.com
3. Microsoft Hyper-V: The Natural Choice for Windows Environments
Hyper-V Overview
Microsoft Hyper-V is a Type-1 hypervisor included with Windows Server. For organizations primarily running Windows environments, it’s a natural fit. Deep integration with Active Directory, System Center, and Azure is its main strength.
Windows Server 2025 and Hyper-V Changes
Windows Server 2025, released in late 2024, brought significant changes to Hyper-V.
End of free Hyper-V Server: Microsoft previously offered a free standalone Hyper-V Server edition that could run unlimited Linux VMs without additional licensing—popular in cost-sensitive environments. Hyper-V Server 2019 was the last free version. No free Hyper-V Server was released for Windows Server 2022 or 2025. Using Hyper-V now requires a Windows Server license.
New features in Windows Server 2025:
- GPU Partitioning (GPU-P): Share a single GPU across multiple VMs
- GPU-P Live Migration: Live migrate VMs using GPU-P
- Enhanced VM scalability: Support for up to 240TB RAM and 2048 logical processors
- Accelerated Networking: Improved network performance using SR-IOV
- Azure Arc integration: Manage on-premises servers from Azure
Windows Server 2025 Licensing and Pricing
Since Hyper-V is included with Windows Server, Windows Server licensing costs effectively equal Hyper-V costs.
| Edition | Virtualization Rights | Reference Price (16-core) |
|---|---|---|
| Standard | Up to 2 VMs per physical server | ~$1,176 USD |
| Datacenter | Unlimited VMs | ~$6,771 USD |
Key licensing points:
- Per-core licensing: All physical cores must be licensed
- 16-core minimum: Minimum of 16 core licenses per server
- CALs required: Client Access Licenses needed for every user or device accessing the server
- Standard edition stacking: Running more than 2 VMs on Standard requires license stacking
New in 2025 – Pay-as-you-go: A consumption-based option through Azure Arc. Pricing is approximately $33.58 per core per month—useful for temporary capacity needs.
Hyper-V Pros
- Windows integration: Seamless integration with Active Directory, System Center, and Azure
- Included in license: No additional cost if you already have Windows Server
- PowerShell management: Powerful scripting and automation capabilities
- Hyper-V Replica: Built-in replication for disaster recovery
- Familiar environment: Comfortable interface for Windows administrators
Hyper-V Cons
- Windows dependency: Relatively limited compatibility with Linux-centric environments
- USB passthrough limitations: Limited ability to pass USB devices directly to VMs
- Additional management tool costs: System Center for large-scale management requires separate licensing
- No free option: The free Hyper-V Server is no longer available
Official Resources
- Windows Server: https://www.microsoft.com/windows-server
- Hyper-V Documentation: https://learn.microsoft.com/windows-server/virtualization/hyper-v/hyper-v-overview
4. Proxmox VE: A Compelling Open-Source Alternative
Proxmox VE Overview
Proxmox Virtual Environment (Proxmox VE) is an open-source virtualization platform based on Debian Linux. Development began in 2005, and it’s currently at version 9.x. With VMware’s licensing changes, Proxmox has emerged as the most talked-about alternative.
The defining characteristic of Proxmox VE is that all features are completely free to use. Paid subscriptions provide technical support and access to the Enterprise repository—not feature unlocks.
Core Technologies
KVM (Kernel-based Virtual Machine): Proxmox uses KVM, integrated into the Linux kernel, for full virtualization. It runs Windows, Linux, and other operating systems at near-native performance.
LXC (Linux Containers): Proxmox also supports container-based virtualization. LXC containers have less overhead than VMs, making them more efficient for Linux workloads.
Web-based management: All administration tasks can be performed through a web browser—no separate client installation required.
Key Features
| Feature | Description |
|---|---|
| Clustering | Centrally manage multiple nodes as a single cluster |
| High Availability (HA) | Automatic VM failover on node failure |
| Live Migration | Move VMs without downtime |
| ZFS Storage | Built-in snapshots, replication, compression, and deduplication |
| Ceph Storage | Software-defined distributed storage |
| Backup & Restore | Built-in backup tool (vzdump) + Proxmox Backup Server integration |
| Software-Defined Networking | VLAN, bridge, and SDN support |
| REST API | Automation and third-party integration |
| Two-Factor Authentication | TOTP, WebAuthn, and YubiKey support |
Proxmox Pricing Structure
Proxmox has a straightforward and transparent pricing model.
Free usage: All features are free—for personal or commercial use. The only caveat is a subscription reminder popup at login.
Paid subscriptions (annual, per CPU socket):
| Plan | Price | Support Tickets | Response Time |
|---|---|---|---|
| Community | €115/year | Community support only | – |
| Basic | €355/year | 3/year | 1 business day |
| Standard | €530/year | 10/year | 4 hours |
| Premium | €1,060/year | Unlimited | 2 hours |
Important: Proxmox subscriptions are per-socket, not per-core. A server with one 64-core CPU only requires one socket subscription. This is a significant difference from VMware’s per-core licensing.
Proxmox Pros
- Completely free: Full features available at no cost, including for commercial use
- Open source: AGPL v3 license with fully available source code
- Low cost: Even paid subscriptions are far cheaper than VMware
- KVM + LXC: Manage full virtualization and containers from a single platform
- Active community: Extensive resources via forums, Wiki, and Reddit
- VMware migration tool: Built-in tool for importing VMs from VMware
Proxmox Cons
- Limited support: Free usage means community support only (paid subscriptions offer 5 days/week support)
- Learning curve: Admins coming from VMware or Hyper-V need to adapt to Linux
- Third-party ecosystem: Not as extensive as VMware’s (though major backup solutions like Veeam now support Proxmox)
- Enterprise perception: Large enterprises still tend to prefer VMware or Hyper-V
Official Resources
- Proxmox VE: https://www.proxmox.com
- Documentation/Wiki: https://pve.proxmox.com
- Downloads: https://www.proxmox.com/en/downloads
5. Platform Comparison: Key Differences at a Glance
Minimum System Requirements
| Component | VMware ESXi | Microsoft Hyper-V | Proxmox VE |
|---|---|---|---|
| CPU | 64-bit x86 (VT-x/AMD-V required) | 64-bit x86 (VT-x/AMD-V, SLAT required) | 64-bit x86 (VT-x/AMD-V required) |
| RAM (minimum) | 8GB | 4GB (8GB+ recommended) | 2GB (8GB+ recommended) |
| Storage | 32GB+ | 32GB+ | 32GB+ (more for ZFS) |
| Network | 1Gbps+ NIC | 1Gbps+ NIC | 1Gbps+ NIC |
| Boot Mode | UEFI recommended | UEFI/Legacy | UEFI/Legacy |
Note: These are minimum requirements for the hypervisor itself. Running actual VMs requires significantly more resources.
Feature Comparison
| Feature | VMware vSphere | Microsoft Hyper-V | Proxmox VE |
|---|---|---|---|
| Hypervisor | ESXi (proprietary) | Hyper-V (Windows kernel) | KVM (Linux kernel) |
| Container Support | vSphere Tanzu (separate) | Windows Containers | LXC (built-in) |
| License Model | Subscription (per-core) | Perpetual/Subscription (per-core) | Open source (free) |
| Free Version | None (discontinued 2024) | None (last was Hyper-V Server 2019) | Full features free |
| Minimum Cost | Thousands annually | $1,176 (Standard 16-core) | €0 (free) |
| Management UI | vSphere Client (web) | Hyper-V Manager, WAC | Web UI |
| High Availability | vSphere HA | Failover Clustering | Proxmox HA |
| Live Migration | vMotion | Live Migration | Live Migration |
| Storage | vSAN, NFS, iSCSI | Storage Spaces Direct | ZFS, Ceph, NFS, iSCSI |
| Guest OS Support | Windows, Linux, etc. | Windows, Linux, etc. | Windows, Linux, etc. |
| Technical Support | Broadcom support | Microsoft support | Community / Paid subscription |
Cost Scenario Comparison
Scenario: 3-node cluster with 2-socket servers (16 cores per socket)
| Platform | Initial Cost | Annual Cost | 5-Year TCO |
|---|---|---|---|
| VMware VCF | Subscription | Tens of thousands+ | Very high |
| Hyper-V Datacenter | ~$40,000 | Maintenance extra | $50,000+ |
| Proxmox VE Premium | €0 | €6,360 (6 sockets × €1,060) | ~€31,800 |
| Proxmox VE Free | €0 | €0 | €0 |
Note: These are approximate figures for comparison. Actual costs vary based on reseller, negotiation, and discounts.
Which Platform for Which Situation?
Choose VMware vSphere if:
- You have significant existing VMware investments and migration costs exceed staying
- You depend on VMware-specific solutions (certain backup, monitoring, or security tools)
- You’re a large enterprise requiring proven enterprise-grade support
- Stability is more important than budget for mission-critical environments
Choose Microsoft Hyper-V if:
- Your organization runs primarily Windows Server workloads
- Integration with Active Directory, System Center, and Azure is important
- You already own Windows Server licenses
- Your team is experienced with Microsoft technologies
Choose Proxmox VE if:
- Cost efficiency is your top priority
- You’re comfortable with open source and community support
- You want to manage VMs and containers from a single platform
- You want to leave VMware but have budget constraints
- You’re building a homelab, dev/test environment, or SMB production environment
6. Getting Started: Installation Guides
Getting Started with VMware vSphere
- Create VMware account: Register at https://www.vmware.com for a Broadcom account
- Purchase subscription: Buy through a reseller or directly from Broadcom
- Download ESXi ISO: Get the ISO image from the customer portal
- Install ESXi: Boot from USB or CD and run the installer
- Deploy vCenter: Deploy vCenter Server Appliance for centralized management
- Apply license: Enter your purchased license key
Note: A 60-day evaluation is available.
Getting Started with Microsoft Hyper-V
- Download Windows Server: Get the 180-day evaluation from Microsoft Evaluation Center
- Install Windows Server: Install Standard or Datacenter edition on your physical server
- Add Hyper-V role: Server Manager → Add Roles and Features → Select Hyper-V
- Configure virtual switch: Hyper-V Manager → Virtual Switch Manager
- Create VM: New → Virtual Machine
Installing Windows Server Core provides a lighter footprint without GUI. Management can be done via Windows Admin Center or PowerShell.
Getting Started with Proxmox VE
- Download ISO: Get the latest ISO from https://www.proxmox.com/en/downloads
- Create bootable media: Use Rufus or Etcher to create a USB boot drive
- Run installer: Boot from USB and follow the installation wizard
- Select target disk (choose filesystem: ZFS, ext4, XFS, etc.)
- Set country/timezone/keyboard
- Set root password and admin email
- Configure network (IP address, gateway, DNS)
- Access web UI: After installation, open
https://server-ip:8006in your browser - Configure repositories (for free usage):
- Select node → Updates → Repositories
- Disable Enterprise repository
- Add No-Subscription repository
- Upload ISO: Datacenter → Storage → ISO Images → Upload
- Create VM: Click Create VM button
# Configure free repositories via shell
# Disable Enterprise repository
sed -i 's/^deb/#deb/g' /etc/apt/sources.list.d/pve-enterprise.list
# Add No-Subscription repository
echo "deb http://download.proxmox.com/debian/pve bookworm pve-no-subscription" > /etc/apt/sources.list.d/pve-no-subscription.list
# Update system
apt update && apt dist-upgrade -y
7. Migrating from VMware to Proxmox
This is a hot topic right now, so it deserves its own section.
Proxmox Built-in VMware Import Tool
Starting with Proxmox VE 8.x (8.2+ recommended), you can import VMs directly from ESXi.
How to use it:
- Select a node in the Proxmox web UI
- Create → Import from VMware
- Enter ESXi host IP, username, and password
- Select VMs to import
- Configure storage and network, then click Import
Limitations:
- Currently connects directly to ESXi hosts (direct vCenter connection not yet supported)
- VMs with snapshots need snapshot consolidation first
- Recommended to power off VMs before migration
Manual Migration Method
- Export VM from VMware in OVF/OVA format
- Convert VMDK to Proxmox format using
qemu-img:qemu-img convert -f vmdk source.vmdk -O qcow2 destination.qcow2 - Create a new VM in Proxmox and attach the converted disk
Migration Considerations
- Drivers: Windows VMs require VirtIO driver installation
- Networking: MAC address changes may require network reconfiguration
- Licensing: Some software may require reactivation due to hardware changes
- Testing: Thorough testing before production migration is essential
8. Conclusion: Choosing a Virtualization Platform in 2025
Selecting a virtualization platform isn’t just about comparing features. You need to consider your organization’s budget, existing infrastructure, team expertise, and long-term strategy.
Key takeaways:
- VMware: Still the most feature-complete platform, but costs have increased dramatically since the Broadcom acquisition. Consider staying if you have significant existing investments and migration costs are prohibitive.
- Hyper-V: A solid choice for Windows-centric environments. Keep in mind that the free version is gone, so Windows Server licensing costs must be factored in.
- Proxmox VE: Unmatched cost efficiency. Enterprise-grade features are available for free, and even paid support is far cheaper than VMware. If you’re comfortable with open source, it’s worth serious consideration.
2024-2025 marks a turning point in the virtualization market. Broadcom’s VMware acquisition has prompted many organizations to reevaluate their platforms. Whatever you choose, invest time in proper testing and develop a solid migration plan.