For years, VMware ESXi has been the go-to hypervisor for many IT teams. It’s robust, battle-tested, and widely supported. But with rising licensing costs, product uncertainty after Broadcom’s acquisition, and a shift toward simpler, open platforms, many businesses are now re-evaluating their virtualization strategy.

Enter Proxmox VE — a powerful, open-source alternative that offers everything most businesses need, without the bloat or the price tag.

In this article, we’ll walk through:

• Why businesses are switching from VMware
• What Proxmox VE offers
• How the migration works
• Key considerations for a smooth transition

Why Are Businesses Leaving VMware?

VMware’s acquisition by Broadcom has sparked concerns:

• Steep price increases
• Elimination of free ESXi
• Reduced flexibility and vendor lock-in
• Mandatory subscriptions for support

For small and mid-sized businesses (SMBs), this often makes VMware unsustainable.

Why Switch to Proxmox VE?

Proxmox VE (Virtual Environment) is an all-in-one virtualization platform that combines:

• KVM (for full VMs)
• LXC (for containers)
• ZFS (for snapshots and data integrity)
• Built-in backup, firewall, and clustering

Key benefits:

• No licensing fees
• Modern web-based interface
• All-in-one solution (no paid add-ons)
• Live migration, HA clustering, backups
• Easy VM import tools
• Optional enterprise support

Migration Overview: VMware ESXi → Proxmox VE

Here’s a high-level look at what’s involved in migrating from ESXi to Proxmox:

Step 1: Assessment & Planning

• Audit your current VMware environment
• Identify critical VMs, storage types, network setup
• Define downtime tolerance and testing process
• Choose Proxmox VE hardware and version

Step 2: Set Up Proxmox VE

• Install Proxmox VE on bare-metal servers
• Configure networking, storage (ZFS, LVM, Ceph, etc.)
• Set up backups and user permissions
• Test with a small test VM

Step 3: Convert VMware VMs

Method 1: Manual Export & Import

1. Shutdown the VM in ESXi
2. Export as OVF/OVA or VMDK
3. Use qm importdisk to bring into Proxmox
4. Attach disk to a new VM in Proxmox
5. Adjust drivers (e.g., VirtIO, network)

Method 2: Live Migration (Advanced)

• Use tools like Clonezilla, Veeam Backup, or StarWind V2V Converter to minimize downtime
• Ideal for production systems requiring quick cutovers

Step 4: Optimize VMs for Proxmox

• Switch to VirtIO drivers for better performance
• Add QEMU guest agent
• Review storage performance and snapshots
• Implement backup policies

Step 5: Go Live & Monitor

• Test all services thoroughly
• Transition DNS and networking
• Monitor performance with Proxmox’s built-in tools or integrate Zabbix/Grafana

Success Story

Case Study: SMB Cloud Provider Saves 70% by Moving to Proxmox

A regional hosting provider was running 20+ VMs on ESXi with vCenter. After rising renewal costs, they migrated to a Proxmox VE cluster using ZFS. The result?

• 70% cost reduction
• Improved snapshot and backup performance
• More flexibility for custom networking and container use

Is Proxmox Right for You?

Proxmox VE is ideal for:

• SMBs seeking cost-effective virtualization
• MSPs looking to build cloud platforms
• Enterprises tired of vendor lock-in
• Educational institutions and labs

We Can Help

Migrating doesn’t have to be risky or painful. Our team offers:

• Zero-downtime planning
• Full Proxmox cluster setup
• End-to-end VM migration
• Backup and DR integration
• Ongoing support & monitoring

Final Thoughts

Switching to Proxmox VE isn’t just about saving money—it’s about gaining control over your infrastructure.

If you’re ready to explore your options, we’ll guide you through every step.

Get in touch with us today for a free migration assessment today.