Proxmox VE for Beginners: Why I Ditched ESXi

Proxmox VE (Virtual Environment) is an open-source server management platform for enterprise virtualization. It integrates KVM hypervisor and LXC containers, networking, and software-defined storage on a single platform. If you are tired of the licensing games from other vendors, Proxmox VE 9.1 is the stable, feature-rich, and completely free alternative your home lab deserves.

I ran ESXi on my home server for five years. It was the industry standard. It was reliable. I knew where every button was.

Then Broadcom acquired VMware.

First, they killed the free license. Then, after the community uproar, they brought it back—but it felt different. The trust was gone. The writing was on the wall. I realized I couldn't build my home lab on a foundation that could be pulled out from under me at any moment.

I needed stability. I needed something open. I needed Proxmox.

Why I Switched (And Why You Should Too)

It wasn't just about the license, although "free forever" is a pretty compelling argument. It was about what you get out of the box.

With ESXi's free tier, I was always hitting walls. Want to backup a VM? Better write a hacky script or pay for Veeam. Want software RAID? Tough luck, buy a hardware controller. Want containers? Spin up a Linux VM first.

Proxmox VE flips the script. Here is what you get for exactly $0:

• KVM and LXC Side-by-Side: This is huge. You can run full Virtual Machines (KVM) for heavy operating systems and lightweight Linux Containers (LXC) for your services. LXC containers share the host kernel, so they use barely any RAM. I run 20+ containers on the same hardware that struggled with 5 VMs.
• ZFS Support: Enterprise-grade software RAID is built-in. It handles data integrity, caching, and snapshots natively. No expensive RAID card required.
• Built-in Backups: A full backup solution is integrated directly into the GUI. Schedule nightly snapshots to a local drive or a NAS. No scripts, no extra software.
• No Hardware Compatibility List (HCL) Hell: Proxmox is Debian. If Debian Linux runs on your hardware (and it runs on almost everything), Proxmox will run on it.

Prerequisites

Before we wipe that server, let's make sure you have what you need.

Hardware

• CPU: 64-bit processor with virtualization support (Intel VT-x or AMD-V). Make sure this is enabled in your BIOS.
• RAM: 2GB is the official minimum, but let's be real—you want at least 8GB if you plan to run anything useful.
• Storage: An SSD for the operating system is highly recommended. It makes the UI snappy and boot times fast. But for most storage you'll want HDDs as they're more affordable.

Software

• USB Flash Drive: At least 4GB.
• Proxmox VE 9.1 ISO: Download it from the official Proxmox website.
• Flashing Tool: I recommend BalenaEtcher or Ventoy.

Step-by-Step Installation

I'll be honest—I expected the install to be more complicated than ESXi. It wasn't. It's actually a standard Debian installer with a nicer coat of paint.

Step 1: Burn and Boot
Flash the ISO to your USB drive, plug it into your server, and boot from it. Select "Install Proxmox VE (Graphical)".

Step 2: Disk Setup
You'll pick your target hard drive.
Tip: If you have a single drive, ext4 is fine. If you have two identical drives, select ZFS (RAID1) right here in the installer. Proxmox will mirror them automatically. It's magic.

Step 3: Network Configuration
This part matters. Give your server a Static IP address. Do not use DHCP. You need to know exactly where your server lives so you can access the web interface later.

Step 4: Finish and Reboot
Once the installer finishes, remove the USB drive and reboot. You'll be greeted by a black screen with white text telling you to browse to https://your-ip-address:8006.

The First Login & The "Nag" Screen

Go to that URL in your browser. Ignore the SSL warning (it's safe, it's just self-signed). Log in with root and the password you set.

You will immediately see a pop-up: "You do not have a valid subscription."

Don't panic. Proxmox sells enterprise support subscriptions. That's how they fund development. You don't need one for a home lab, but out of the box, Proxmox tries to check the Enterprise repositories for updates, which will fail.

Let's fix that immediately. We need to switch to the "No-Subscription" repository.

Fixing the Repositories

Go to your node (click the name of your server on the left), then Updates > Repositories.

1. Disable the pve-enterprise repository.
2. Add the No-Subscription repository.

Alternatively, if you prefer the shell (and you should get comfortable with it!), click Shell on the left and run this one-liner to fix your sources:

# Edit sources.list to add the no-subscription repo
echo "deb http://download.proxmox.com/debian/pve trixie pve-no-subscription" >> /etc/apt/sources.list

# Remove the enterprise repo file if it exists
rm /etc/apt/sources.list.d/pve-enterprise.list

# Update your package list
apt update && apt dist-upgrade -y

Now you can update your server just like any other Linux box.

Creating Your First VM

Let's spin up an Ubuntu Server to prove it works.

1. Upload ISO: Expand your storage (usually named local) on the left. Click ISO Images > Upload and pick your Ubuntu ISO.
2. Create VM: Click the big blue "Create VM" button in the top right.
3. Follow the Wizard:
   • OS: Select the ISO you just uploaded.
   • System: Leave defaults (Graphics card Default, Machine i440fx).
   • Disks: Give it some space (e.g., 32GB). Check "Discard" if you're on an SSD (it helps with TRIM).
   • CPU: Crucial Tip: Set "Type" to host. This passes your CPU's actual features through to the VM, which is usually faster than the default emulation.
   • Memory: 2048MB (2GB) is plenty for a test.
4. Confirm and Start: Finish the wizard. Click on your new VM (ID 100), then click Console > Start Now.

Boom. You're watching Ubuntu boot up in a browser window.

Conclusion

Switching hypervisors is scary. I procrastinated it for months because I didn't want to break my setup. But once I got Proxmox running, I realized how much ESXi had been holding me back.

The learning curve is there, sure. It's Linux, not a proprietary appliance. But that's a feature, not a bug. You're learning tools that apply everywhere, not just in a VMware silo.

My home lab feels like mine again. Stable, open, and free.

If you're still on the fence, grab a spare drive and try it. You won't look back.