Organizations are seeking viable and efficient alternatives to VMware due to increasing prices and licensing changes. Is it time to consider Proxmox or pure bare-metal solutions?
For two decades, virtualization has been a cornerstone of enterprise computing. But in 2025, with pressure to cut costs, maintain infrastructure control, and optimize workload performance, many companies are asking: Which option best fits my private cloud? VMware ESXi, Proxmox VE, or directly using bare-metal servers.
This analysis compares these three technologies from both technical and strategic perspectives, with particular attention to integration with networked storage like that offered by Stackscale (Grupo Aire), one of Europe’s most specialized providers of private cloud and bare-metal infrastructure.
VMware ESXi: Stability and maturity, at a high cost
VMware ESXi remains the most traditional choice in enterprise environments. It offers a mature ecosystem, high performance, and advanced tools such as vMotion, DRS, and HA. However, it also comes with high licensing costs and a complex management structure.
Since Broadcom’s acquisition of VMware, many mid-sized companies and service providers have experienced sharp cost hikes, prompting a re-evaluation of alternatives like Proxmox or even returning to pure bare-metal setups.
Strengths:
- Established and reliable ecosystem
- Integration with advanced management tools
- Wide manufacturer support
Weaknesses:
- High licensing and support costs
- Less flexibility in mixed environments
- Greater dependence on external vendors
Proxmox VE: Open source with an enterprise focus
Proxmox VE is an open-source project that has gained significant traction in recent years. It provides KVM virtualization and LXC containers through a polished web interface, high-availability clustering, and no license fees.
With its open philosophy and optional subscription model, Proxmox enables companies to modernize their infrastructure with better cost control and flexibility, without sacrificing reliability.
Strengths:
- Free and vendor-agnostic
- Supports VMs and containers from a single console
- Highly automatable via REST API and Ansible
Weaknesses:
- Smaller ecosystem compared to VMware
- Requires more technical expertise for complex setups
Bare-metal: When performance leaves no room for intermediaries
Despite virtualization dominating data centers, some workloads—such as AI, big data, OLTP databases, or HPC environments—benefit from running directly on hardware without a hypervisor layer.
With modern bare-metal platforms and high-availability network storage, private bare-metal clouds are regaining prominence, especially for organizations seeking technological independence, maximum performance guarantees, and full control.
Strengths:
- 100% application performance
- Complete physical isolation
- Full customization of software and security
Weaknesses:
- Higher initial management complexity
- Lighter scaling if automation isn’t implemented properly
Technical comparison at a glance
| Feature | VMware ESXi | Proxmox VE | Bare-Metal |
|---|---|---|---|
| Licensing | Commercial (high) | Free / optional support | No hypervisor license |
| Enterprise support | Yes (Broadcom) | Yes (Proxmox subscription) | Varies by provider |
| Ease of use | High | High | Low (requires automation) |
| Performance | 95-98% native | 96-99% native | 100% native |
| Scalability | High (vCenter, DRS) | High (cluster, HA) | High (with automation) |
| TCO over 3 years | High | Low to moderate | Moderate to high |
Which option fits best where?
VMware remains ideal for environments already entrenched in its ecosystem or requiring complex clustering and specialized tools. But its high cost makes it less attractive for new or medium-sized infrastructures.
Proxmox is perfect for organizations seeking better ROI without losing enterprise capabilities. Many cloud service providers already use it as the foundation for private or hybrid solutions.
Bare-metal is the optimal choice when maximum performance, privacy, or regulatory compliance demands full control. Today, it’s feasible even in automated deployments, especially with solutions like Stackscale, which combine bare-metal servers with high-availability network storage.
The role of shared storage
One critical element across these technologies is storage. Stackscale’s centralized, replicated network storage based on NetApp guarantees:
- Data high availability even if a host fails
- Rapid server replacement without data loss
- Non-disruptive migrations between environments (VMware to Proxmox or vice versa)
- Support for multiple technologies with a common backend
This approach eliminates vendor lock-in associated with local storage, enhances resilience, and ensures that storage is an asset rather than a bottleneck.
Conclusion
Choosing between VMware, Proxmox, and bare-metal is now as much a strategic decision as a technical one. Companies that prioritize agility, cost control, and technological sovereignty are restructuring their virtualization stacks or moving towards physical infrastructure.
The future of private clouds will be hybrid and flexible: some workloads will run on VMware, others on Proxmox, and the most demanding directly on bare-metal. The key is to have an open architecture and a robust storage strategy that enables migration, scaling, and adaptation to business needs.
Stackscale offers private cloud, bare-metal, and dedicated infrastructure services in Europe. Their solutions empower medium and large enterprises to build sovereign, efficient, and sustainable clouds.