For years, for many German SMEs (and a large part of the European ecosystem), choosing a hypervisor was almost a formality: VMware was the “default” standard. Not always because it was the cheapest option, but because it was the most familiar, the most widespread, and aligned with a very specific IT philosophy: pay for stability, predictability, and a vast ecosystem.
But the landscape has changed. And not due to a single technical reason, but because of a shift in rules that directly impacts budgets and strategy. As companies review their infrastructure roadmaps for 2026, the comparison between VMware and Proxmox has become a much more uncomfortable debate: how much control is ceded to the provider… and at what cost?
The pivot that changed everything: licenses, bundles, and unpredictable TCO
At the heart of the upheaval is the transformation of VMware’s commercial model under Broadcom, shifting towards more subscription and packages, with many industry conversations highlighting cost increases that several associations and clients have described as difficult to bear.
In Europe, concern has gone beyond hallway chatter: industry groups and market players have called on institutions to closely examine the impact on competition and costs. In Germany, the VOICE association (corporate IT users) has criticized the effect of the new approach on their members’ bills; and at the European level, there have been movements within the cloud ecosystem around pricing and terms.
Beyond abbreviations and press releases, the practical effect is straightforward: when the “entry price” shifts and becomes less predictable, the TCO (total cost of ownership) ceases to be a stable spreadsheet and instead becomes a risk variable. That’s when many SMEs, which previously hadn’t considered alternatives, start to do so.
Two philosophies: “premium automation” versus “control and transparency”
VMware: the enterprise machinery that works… if the context allows
VMware remains a very solid platform for environments that require a layer of automation and maturity that has been refined over years: load balancing, resource optimization, large-scale operations, integrations with a vast ecosystem of partners and tools. For organizations with demanding requirements, that maturity carries weight.
The problem is that, by 2026, more infrastructure managers are asking themselves a different question before discussing features: Can I justify this cost and dependency 12, 24, or 36 months down the line? As the market shifts towards bundles and subscriptions, the feeling of “permanent leasing” becomes more apparent.
Proxmox VE: open source with a practical focus (and increasingly enterprise-grade)
Proxmox VE takes a different route: based on Debian, it combines KVM (virtual machines) and LXC (containers) in a single console. This approach appeals to technical teams because it offers transparency, an approachable learning curve for Linux profiles, and, most importantly, a key idea: software doesn’t block hardware evolution nor enforce a specific architecture.
In positioning terms, Proxmox has moved from being “the backup plan for labs” to a real production option, especially when discussions focus on vendor independence and cost control.
Why Proxmox is gaining ground: three recurring reasons
1) Integrated backup and storage as part of the “package”
Many SMEs find that VMware isn’t just vSphere: it often includes additional components (backup, management, software-defined storage…) which can add complexity and cost depending on the case.
Proxmox, on the other hand, relies on very direct integrations with ZFS and Ceph (depending on configuration), and also offers Proxmox Backup Server as a natural part of the ecosystem. This doesn’t mean “everything is free” (support and enterprise repositories are available), but the starting point is different: it works first, then you decide what support level to purchase.
2) Hardware sovereignty: less “forced refresh”
Another cultural difference: Proxmox doesn’t enforce a closed compatibility list similar to traditional enterprise platforms. In practice, many SMEs see this as an advantage: they can extend hardware cycles or modernize in phases without feeling pushed by vendors.
3) Simpler architecture for clusters and HA
In typical SME scenarios (2–8 nodes), Proxmox is often perceived as “more straightforward”: management occurs directly on the nodes, and the cluster setup doesn’t require a separate “like vCenter” component to handle day-to-day operations. This simplicity reduces friction for small teams: fewer critical components, fewer points of failure, less “management layer” to maintain.
What VMware still does better (and it’s worth stating clearly)
It would be a mistake to see 2026 as a world where VMware becomes irrelevant. For organizations with:
- advanced automation and large-scale operations needs,
- strong dependencies on the VMware ecosystem (tools, processes, internal skills),
- strict regulatory or audit requirements,
- or an architecture already optimized around their products,
…VMware can still be the most logical choice. The key difference now is that this decision often comes with a plan: re-negotiate, optimize consumption, review bundles, and justify the value.
The right question for 2026: what are you really buying?
The debate is no longer “VMware has more features” or “Proxmox is open source.” The questions are more like:
- Do you want maximized automation with a huge ecosystem, accepting the trade-off of the business model?
- Or do you prefer control, flexibility, and more manageable costs, understanding that some sophistication depends more on your team and design?
And there’s a practical aspect: migrating isn’t just about moving VMs. It involves reviewing networking, storage, backups, HA, monitoring, procedures, and training. For many SMEs, a full “big-bang” shift in 2026 isn’t the most realistic approach—instead, a phased strategy makes more sense:
- Pilot with a small cluster,
- Migrate non-critical workloads,
- Validate backup/restore and RPO/RTO,
- And only then the final decision.
Because what many companies have learned in recent months is that virtualization is no longer only decided in the data center: it’s also a matter of procurement, finance, and risk management.
Frequently Asked Questions
How to accurately calculate the real TCO of VMware versus Proxmox in 2026 for a small business?
The key is comparing not only licenses but support, backup, storage, operational hours, renewals, and migration/training costs. An “honest” TCO projects a three-year scenario, not just the first year.
What workloads are easiest to migrate from VMware to Proxmox initially?
Workloads with simple dependencies—like internal services, utilities, dev/test environments—are good candidates, especially if a clear rollback plan exists. Critical databases or licensed systems are usually better addressed in later phases.
Can Proxmox replace vCenter in smaller environments?
In many SMEs, yes: management, clustering, high availability, and live migration are handled directly within the platform. The difference is that some advanced automation features depend more on design and supplementary tools.
When does it make sense to stick with VMware despite licensing changes?
When the value of the ecosystem (automation, integrations, support, mature processes) clearly outweighs the costs, and the organization prefers to minimize operational uncertainty—even if that means vendor dependence.