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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 nodes160 cores1.28 TB RAM5 TB usable storage~50 VMs

Why look at an alternative right now

After acquiring VMware, Broadcom fundamentally changed its licensing

1

End of perpetual licenses

Broadcom has ended sales of new perpetual licenses. Existing perpetual licenses can still be used, but once support ends the customer loses updates and technical support.

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 the original editions

The original perpetual editions were discontinued or replaced by subscription offerings. Smaller environments can still buy a vSphere Standard subscription, but it lacks vSAN and DRS; a hyper-converged cluster like our model one is therefore steered towards VVF or VCF.

2–5×

higher renewal quotes reported in licensing advisors' analyses for some 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 usable capacity (raw is higher, per redundancy)

~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 renewableofficial price list

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)

Estimated prices before discountmarket estimate

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 supportofficial price list

Proxmox VE

  • Subscription per CPU socket (unlimited cores, RAM and VMs)
  • 3 tiers: €370–1,100 / socket / year
  • Ceph, HA, SDN and built-in backup included
  • Open-source licensing – reduces single-vendor dependence

Our cluster: €1.9–5.5k / year

Annual license and support costs

Model cluster (160 cores / 5 sockets), VMware prices per third-party market estimates, thousand EUR per year

5–9×

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

* 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€1,85031 business day (Austria)
Standard€550€2,750104 hours on business days (Austria) + SSH support
Premium€1,100€5,500unlimited2 hours on business days (Austria) + SSH support

Recommendation for production: Standard or Premium – access to the stable enterprise repository and guaranteed first-response times for critical requests (on Austrian business days).

Storage: VMware vSAN vs. Proxmox Ceph

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

AspectVMware vSANProxmox Ceph
LicensingOnly partially included: VVF 0.25 TiB / core, VCF 1 TiB / core (raw capacity); beyond that ~$350 / TiB / year market estimateFully part of the solution, no capacity-based licensing
Our scenario (5 TB usable)Covered by the entitlement – 5 TB usable ≈ 10–15 TiB raw at common redundancy, VVF includes 40 TiB raw calculatedCovered, €0 extra
HardwareCertified vSAN ReadyNodes / HCLCommodity servers and SSD/NVMe of your choice
RedundancyRAID-1 / erasure coding (RAID-5/6)3× replication / erasure coding
Scaling and repairsBy adding nodes, managed by vCenterBy 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. An existing storage array can therefore also be used with Proxmox.

TCO over 1, 3 and 5 years

VMware prices per third-party market estimates (Broadcom publishes no public price list); Proxmox includes a one-time migration – an indicative €20,000 (services and training)

1 year3 years5 years5 years (CZK)
VMware VVF~€26.6k~€79.7k~€132.8k~CZK 3.2M
VMware VCF~€48.9k~€146.8k~€244.7k~CZK 5.9M
Proxmox Premium(incl. migration)~€25.5k~€36.5k~€47.5k~CZK 1.2M
Proxmox Standard(incl. migration)~€22.8k~€28.3k~€33.8k~CZK 0.8M
Proxmox Basic(incl. migration)~€21.9k~€25.6k~€29.3k~CZK 0.7M

5-year total-cost difference depending on the chosen support tier: roughly €85–105k vs. VVF (~CZK 2.1–2.5M) and €195–215k vs. VCF (~CZK 4.8–5.2M).

Key assumptions:VMware prices per market estimates, without negotiated discountsmarket estimateProxmox incl. one-time migration – €20,000 estimateestimate – validate in pilotCNB FX 07/2026: 1 USD = €0.874; €1 = CZK 24.27official price listAll assumptions and sources

Table values are rounded – the inputs are estimates, so euro-level precision would be misleading. Detailed calculation for your own environment:TCO calculator

Total cost development over time

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

050100150200250startyear 1year 2year 3year 4year 5VCF 245VVF 133PVE 29–48
VMware VCFVMware VVFProxmox VE (Basic–Premium)
Chart data as a table
k€startyear 1year 2year 3year 4year 5
VMware VCF048.997.9146.8195.8244.7
VMware VVF026.653.179.7106.3132.9
Proxmox Premium025.53136.54247.5
Proxmox Standard022.825.528.33133.8
Proxmox Basic021.923.725.627.429.3

A VMware subscription is a recurring annual operating cost; the Proxmox migration cost is incurred once, up front.

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)

calculated

~6 months

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

calculated

~CZK 2.1–5.2M

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

calculated

How to read these numbers

The annual subscription savings pay back the one-time migration cost in roughly 6–12 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

FeatureVMware vSphere / VCFProxmox VE
High availability (HA) and live VM migration
Software-defined storagevSAN (capacity-based licensing)Ceph, ZFS – included
Software-defined networking (SDN)NSX (VCF only)SDN module included
ContainersTanzu / vSphere IaaSLXC natively + VMs for Kubernetes
Backup3rd party (Veeam etc.)Built-in backup + Proxmox Backup Server (separate product, support sold separately); Veeam supports PVE (own licensing)
Central multi-cluster managementvCenter (bundled)Datacenter Manager (free)
API and automation (Ansible, Terraform)
Source code and independenceProprietaryOpen source (AGPL) – lower single-vendor dependence

In the model scenario (~50 VMs on 5 nodes), the assessed requirements appear technically achievable with Proxmox VE, subject to a pilot and validation of specific integrations.

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 concepts (HA, live migration, snapshots) are similar and day-to-day administration happens in a single web UI.

Third-party ecosystem

Veeam officially supports Proxmox VE (since v12.2) and Zabbix provides an official template; for Ansible and Terraform there are actively developed community integrations. Specific integrations are verified during the pilot.

Enterprise support

A subscription with guaranteed first-response times – from 2 hours for critical requests during Austrian business days – directly from the vendor + a network of local partners for 24/7 monitoring.

The VM migration itself

Built-in import from ESXi; smaller VMs see downtime in the range of minutes, large disks or complex systems take longer – the pilot determines the exact figures. The procedure includes a rollback plan, with VMware running in parallel until the end.

When staying on VMware makes sense

Applications certified only for vSphere, deep existing integrations and automation, team know-how tied to VMware, or a requirement for global-scale support. These are exactly the points the initial analysis and pilot examine.

Migration plan: ~3 months

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

  1. 12–3 weeks

    Analysis and design

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

  2. 23–4 weeks

    Pilot

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

  3. 34–6 weeks

    Production migration

    Gradual migration of ~50 VMs in waves; the pilot validates per-VM downtime (typically minutes for smaller VMs)

  4. 41–2 weeks

    Stabilization

    Monitoring, training, switching VMware off and ending the VMware subscription costs

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

Key capabilities remain

HA, live migration, shared storage (Ceph), backups and support with guaranteed first-response times are all available after the switch

Recommended next steps

  1. 1

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

  2. 2

    Calculate your own scenario in the TCO calculator.

  3. 3

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

Appendix: assumptions and sources

Calculation assumptions

  • VMware prices per third-party market estimates (Broadcom does not publish an official price list), without negotiated discounts: VVF ~$190, VCF ~$350 per core/year; billed for 160 cores (min. 16 cores/CPU, 72 per order).
  • vSAN: the entitlement is counted in raw TiB – VVF includes 0.25 TiB/core, VCF 1 TiB/core. The required 5 TB of usable capacity corresponds to ~10–15 TiB raw at common redundancy and is covered (VVF entitlement 40 TiB raw); 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.
  • The TCO covers the Proxmox VE subscription; built-in backup ships with the platform. Proxmox Backup Server (a separate product with its own support subscription) and Veeam licensing are not included in the model.
  • 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.

Sources

How figures on this page are labelled:official price listmarket estimatemodel assumptioncalculatedestimate – validate in pilot