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TCO analysis · July 2026

Proxmox VE vs. VMware vSphere

A business comparison: licensing costs and the return on switching

Model cluster: 5 nodes 160 cores 1.28 TB RAM 5 TB storage ~50 VMs

Why look at an alternative right now

After acquiring VMware, Broadcom fundamentally changed its licensing

1

End of perpetual licenses

Perpetual licenses have been discontinued. The software can only be run with an active subscription – once it expires, the right to use it ends.

2

Billed per core, not per socket

The new model charges for every physical core, with a minimum of 16 cores per CPU and 72 cores per order.

3

End of affordable editions

vSphere Standard has been discontinued with no renewal path. Customers must move to the more expensive VVF or VCF bundles.

2–5×

higher renewal quotes reported by VMware customers after moving to the new model

Source: licensing advisory analyses, 2025–2026

The model environment for the comparison

A typical production virtualization cluster of a mid-sized company

5

virtualization nodes

1 CPU socket per node

160

physical cores

32 cores per socket

1.28 TB

total RAM

256 GB per node

5 TB

usable storage

shared storage capacity

~50

virtual servers

production workload

3

years – typical horizon

TCO computed for 1 / 3 / 5 years

Identical hardware in both scenarios – only software and support costs are compared.

Three licensing worlds

What customers used to pay, what they pay today, and what Proxmox offers

No longer available or renewable

VMware before (perpetual)

  • One-time license per CPU socket
  • vSphere Ent+ ~$3,600 / CPU
  • vSAN and vCenter licensed separately
  • Annual SnS support ~20–25% of list price

Our cluster: ~€9,600 / year (SnS)

List prices before discount

VMware today (subscription)

  • Subscription for every physical core
  • VVF: $135–190 / core / year
  • VCF: ~$350 / core / year
  • Minimums: 16 cores / CPU, 72 / order

Our cluster: €26.6–48.9k / year

Software is free, you pay for support

Proxmox VE

  • Subscription per CPU socket (unlimited cores, RAM and VMs)
  • 3 tiers: €370–1,100 / socket / year
  • Ceph, HA, SDN and backup included
  • Open source – no vendor lock-in

Our cluster: €1.9–5.5k / year

Annual license and support costs

Model cluster (160 cores / 5 sockets), list prices, thousand EUR per year

5–9×

lower annual costs with Proxmox VE Premium compared to VMware VVF / VCF

In CZK: 133k CZK vs. 645k–1.19M CZK per year

* SnS = annual support for previously purchased perpetual licenses (Ent+ / vSAN Adv. / vCenter). FX: 1 USD = 0.874 EUR, 1 EUR = 24.27 CZK.

Proxmox VE support tiers

Price per CPU socket per year (excl. VAT) – the software is identical across all tiers

Tier€ / socket / yearCluster / year (5 sockets)Tickets / yearResponse time
Basic €370 €1,850 3 1 business day
Standard €550 €2,750 10 4 hours on business days + SSH support
Premium €1,100 €5,500 unlimited 2 hours on business days + SSH support

Recommendation for production: Standard or Premium – access to the stable enterprise repository and guaranteed response times. Even the top Premium tier is ~5× cheaper than the VMware VVF list price.

Storage: VMware vSAN vs. Proxmox Ceph

Both solutions are hyper-converged (HCI) – disks live directly in the nodes, no external array

Aspect VMware vSAN Proxmox Ceph
Licensing Only partially included: VVF 0.25 TiB / core, VCF 1 TiB / core; beyond that ~$350 / TiB / year Fully part of the solution, no capacity-based licensing
Our scenario (5 TB) Covered by the entitlement (40 TiB with VVF) Covered, €0 extra
Hardware Certified vSAN ReadyNodes / HCL Commodity servers and SSD/NVMe of your choice
Redundancy RAID-1 / erasure coding (RAID-5/6) 3× replication / erasure coding
Scaling and repairs By adding nodes, managed by vCenter By adding nodes / disks, self-healing

Other supported storage options: VMware – FC/iSCSI SAN, NFS, NVMe-oF (external array required). Proxmox – ZFS with replication, LVM-thin, NFS/iSCSI/FC SAN, GlusterFS. An existing storage array can therefore also be used with Proxmox.

TCO over 1, 3 and 5 years

List prices; Proxmox includes a one-time migration – an indicative €20,000 (services and training)

1 year3 years5 years5 years (CZK)
VMware VVF €26,570 €79,709 €132,848 CZK 3.22M
VMware VCF €48,944 €146,832 €244,720 CZK 5.94M
Proxmox Premium (incl. migration) €25,500 €36,500 €47,500 CZK 1.15M
Proxmox Standard (incl. migration) €22,750 €28,250 €33,750 CZK 0.82M
Proxmox Basic (incl. migration) €21,850 €25,550 €29,250 CZK 0.71M

5-year savings depending on the chosen support tier: €85–104k vs. VVF (CZK 2.1–2.5M) and €197–215k vs. VCF (CZK 4.8–5.2M).

FX: 1 USD = 0.874 EUR; 1 EUR = 24.27 CZK (Czech National Bank, 07/2026). Detailed calculation for your own environment: online TCO calculator ↗

Total cost development over time

Cumulative costs in thousand EUR (Proxmox includes the migration in year 1)

0 50 100 150 200 250 start year 1 year 2 year 3 year 4 year 5 245 133 29–48
VMware VCF VMware VVF Proxmox VE (Basic–Premium)

The gap widens every year – a VMware subscription is paid again and again, the Proxmox migration only once.

Return on the migration investment

Indicative one-time investment of €20,000 (analysis, cluster build, moving 50 VMs, training) – the exact price comes from a quote

10–12 months

payback vs. VMware VVF (depending on the Basic–Premium support tier)

5–6 months

payback vs. VMware VCF (depending on the Basic–Premium support tier)

CZK 2.1–5.2M

saved over 5 years depending on the support tier and VMware variant

How to read these numbers

The annual subscription savings (€21–47k depending on the support tier and VMware variant) pay back the one-time migration cost in 5–12 months. Every following year of operation is pure savings. A negotiated VMware discount extends the payback – yet even with a 40% discount off VVF it stays under 2 years.

Technical comparison for operations

Both platforms cover the key enterprise features

Feature VMware vSphere / VCF Proxmox VE
High availability (HA) and live VM migration
Software-defined storage vSAN (capacity-based licensing) Ceph, ZFS – included
Software-defined networking (SDN) NSX (VCF only) SDN module included
Containers Tanzu / vSphere IaaS LXC natively + VMs for Kubernetes
Backup 3rd party (Veeam etc.) Built-in + Proxmox Backup Server; Veeam supports PVE
Central multi-cluster management vCenter (bundled) Datacenter Manager (free)
API and automation (Ansible, Terraform)
Source code and independence Proprietary Open source (AGPL), no lock-in

For ~50 VMs on 5 nodes, Proxmox VE covers 100% of everyday operational requirements.

Migration risks and how to address them

Openly: what needs to be handled so the migration has no impact on operations

Team know-how

Administrator training is part of the migration budget; the PVE web UI is simpler than vCenter and the concepts (HA, migration, snapshots) are the same.

Third-party ecosystem

Veeam, Zabbix, Ansible and Terraform officially support Proxmox. Specific integrations are verified during the pilot.

Enterprise support

A subscription with an SLA (response from 2 h) directly from the vendor + a network of local partners for 24/7 monitoring.

The VM migration itself

Built-in import from ESXi; VMs are moved gradually with minimal downtime (minutes per VM), with a rollback option.

Migration plan: ~3 months

A gradual transition without big-bang risk – VMware runs in parallel until the very end

  1. 1 2–3 weeks

    Analysis and design

    VM inventory, dependencies, cluster and Ceph design, migration plan

  2. 2 3–4 weeks

    Pilot

    Proxmox cluster build, test migration of selected VMs, backups, monitoring

  3. 3 4–6 weeks

    Production migration

    Gradual migration of ~50 VMs in waves, downtime of minutes per VM

  4. 4 1–2 weeks

    Stabilization

    Monitoring, training, switching VMware off = no more payments to Broadcom

Ideal timing: 3–6 months before your current VMware support / subscription expires.

Summary and recommendation

65–80% savings

on annual virtualization software costs compared to current VMware prices

Payback < 12 months

the one-time migration investment pays for itself within a year, even against the cheapest VMware option

No operational compromises

HA, live migration, shared storage (Ceph), backups and SLA-backed support all remain

Recommended next steps

  1. 1

    Request a current renewal quote from Broadcom (real numbers instead of list prices).

  2. 2

    Calculate your own scenario in the online TCO calculator ↗ .

  3. 3

    Approve a Proxmox VE pilot (3 nodes, test VMs, 1 month).

Appendix: assumptions and sources

Calculation assumptions

  • VMware list prices without negotiated discounts: VVF $190, VCF $350 per core/year; billed for 160 cores (min. 16 cores/CPU, 72 per order).
  • vSAN: VVF includes 0.25 TiB/core, VCF 1 TiB/core; the required 5 TB is covered, add-on ~$350/TiB/year.
  • Legacy VMware perpetual model: vSphere Ent+ $3,595/CPU + vSAN Adv. $3,995/CPU + vCenter $5,995; annual SnS ~$10,989 (€9,600). No longer available.
  • Proxmox VE: Basic €370 / Standard €550 / Premium €1,100 per socket/year; TCO computed for all tiers (€1,850–5,500/year per cluster), conservative headline scenario = Premium.
  • Migration: one-time €20,000 – an indicative estimate (analysis, implementation, moving 50 VMs, training); the exact price comes from an implementation partner's quote, parameters adjustable in the calculator.
  • Czech National Bank FX rates as of 14 Jul 2026: 1 EUR = 24.27 CZK; 1 USD = 21.22 CZK (USD ≈ 0.874 EUR). Prices excl. VAT.