Baku, Azerbaijan info@viasoft.az +994 50 345 10 11
viasoft

VMware to Proxmox migration: is it worth leaving after the price hikes

Rəşad Əliyev, Infrastructure & Security Engineer at viasoft

After Broadcom acquired VMware, the licensing model switched to subscription, and renewal costs jumped severalfold for many companies. Proxmox VE is a free, open-source virtualization platform that covers the same core tasks (virtual machines, clustering, high availability, live migration, backup) with no license fee. The move makes sense if the VMware subscription is hurting your budget and you have someone to run the infrastructure — or you're ready to outsource that. It doesn't make sense if you're critically tied to specific VMware features or to third-party software certified only for it. Below: what you gain, what you lose, and how to migrate without downtime.

Calculate the cost of leaving VMware, freeContacts · Discuss your task → Project scope estimator

What happened to VMware and why everyone is talking about it

VMware was the standard for enterprise virtualization for decades. After Broadcom bought it, a lot changed: perpetual licenses were retired in favor of subscriptions, the product line was simplified down to a few bundles, and renewal bills for some customers grew manyfold — by various public reports, several times over and more.

For large corporations that's painful but survivable. For mid-sized businesses it's often a shock: infrastructure that cost predictable money for years suddenly demands several times the budget with no new value in return. That's exactly what set off the mass hunt for alternatives — and Proxmox turned out to be the main beneficiary of that exodus.

What Proxmox is and what it can do

Proxmox VE is a free, open-source virtualization platform (AGPLv3 license) for running virtual machines and containers, clustering servers, and managing everything through a single web interface. The fundamental difference from VMware: the key enterprise features are available with no license fee.

What's included out of the box, with no add-on charges:

  • Clustering of several servers under a single management point.
  • Live migration — moving a running virtual machine between servers without stopping it.
  • High availability (HA) — automatic restart of virtual machines on another server in case of failure.
  • Built-in backup with deduplication (Proxmox Backup Server).
  • Hyper-converged storage (Ceph) — distributed storage with no separate, expensive SAN.

What Proxmox charges for is only a subscription to the stable update repository and support — but the features themselves aren't locked behind it, unlike the "pay for the license or it won't run" model.

What you actually gain

  • No more license fee. The main, measurable effect — the ever-growing subscription disappears. The money moves to support, which you control.
  • Control and no vendor lock-in. Open code, open formats, no dependence on one vendor's pricing policy.
  • Sovereignty. The platform is entirely under your management; nothing "phones home" for licensing.
  • Customization. Openness lets you write automation and integrations to fit your processes.

What you lose or need to account for (honestly)

Leaving VMware is not a free lunch, and selling it as "just switch VMware off" would be dishonest:

  • The cost moves, it doesn't vanish. There's no license, but migration and support cost money and time. The honest comparison is total cost of ownership over several years, not "subscription versus zero."
  • You need expertise. Proxmox takes skill to operate (Ceph and HA especially). Without an in-house team or a provider, "set it and forget it" won't happen.
  • Third-party software compatibility. Some enterprise products (backup, monitoring) are certified for VMware first. This has to be checked before migrating.
  • Team habits. Administrators who spent years in the VMware interface go through retraining.
  • Specific VMware features. If you rely on niche capabilities of the VMware ecosystem, they may have no direct equivalent — this gets checked during the audit.

How to migrate without downtime (artifact)

A sound migration isn't "everything off on Friday, up on the new platform Monday" — it's a phased process:

  1. Audit of the current infrastructure. How many servers and virtual machines, what dependencies and third-party software, which VMware features are actually in use.
  2. Designing the target Proxmox cluster: network, storage (Ceph or other), high availability, backup.
  3. Pilot. Move non-critical virtual machines first, verify operation and restore from backup.
  4. Phased migration of the rest — in groups, with rollback available, with no single business-wide shutdown.
  5. Backup and monitoring setup on the new platform (this is the logical place to build in ransomware protection and security monitoring).
  6. Handover and support — training your team, or operation on our side.

Specific timelines and costs depend on the size and complexity of your infrastructure — they're calculated in a free assessment against your own server estate.

When you should NOT migrate

Honestly: if your VMware subscription is still within a comfortable budget, you have no in-house expertise and no appetite to bring in a provider for support, and critical software is tightly tied to VMware — there's no rush. Migration for migration's sake is pointless; it's justified by a concrete pain (rising prices) and the resources to support it. We'll tell you so directly in the assessment.

FAQ

  • Why is everyone leaving VMware? After the Broadcom acquisition, licensing switched to subscription, and renewal costs rose severalfold for many, with no new value. That set off the search for alternatives.
  • Is Proxmox really free? The platform itself and its enterprise features — yes (AGPLv3 license). Only the subscription to stable updates and support is paid; the features aren't locked without it.
  • Does Proxmox fully replace VMware? The core tasks (VMs, clustering, HA, live migration, backup, Ceph storage) — yes. Niche VMware features and third-party software compatibility need to be checked in the audit.
  • Can you migrate without downtime? Yes — in phases: a pilot on non-critical VMs, then transfer in groups with rollback available, with no single shutdown.
  • Is it definitely cheaper? There's no license, but there is a cost for migration and support. The honest move is to compare total cost of ownership over several years — calculated on your numbers.