As we move into 2025, many organizations are reassessing their virtualization strategy in light of VMware's recent licensing changes. Broadcom's acquisition of VMware has introduced a new per-core licensing model and higher entry costs, prompting businesses to explore alternatives that can reduce complexity and expense.
Fortunately, there are both open-source and commercial platforms — Proxmox VE, KVM, Microsoft Hyper-V, and Nutanix — that offer viable virtualization solutions with simpler licensing and comparable feature sets. This article provides an overview of each platform, compares licensing and costs, and discusses key considerations for migrating away from VMware.
Proxmox VE
Open-Source Virtualization Platform
Proxmox Virtual Environment (VE) is a Debian Linux-based platform that integrates the KVM hypervisor for full virtualization and LXC for lightweight containers, all managed through an intuitive web-based interface. It has gained popularity for its rich features and community-driven development.
KVM and Open-Source Hypervisors
Kernel-based Virtual Machine
KVM turns the Linux kernel into a bare-metal hypervisor with excellent performance and strong isolation. It's the underlying technology powering Proxmox, Google Compute Engine, and many cloud providers — a battle-tested foundation for enterprise virtualization.
Microsoft Hyper‑V
Enterprise-Ready Alternative
Included as a role in Windows Server, Hyper-V is particularly attractive to Windows-centric organizations. If your infrastructure already runs on Microsoft technologies, Hyper-V provides a seamless transition with familiar management tools and strong enterprise support.
Nutanix AHV
Hyper‑Converged Infrastructure Alternative
Nutanix offers a broader approach: a hyper-converged infrastructure platform integrating storage, compute, and virtualization into one solution. Its built-in AHV hypervisor (based on KVM) eliminates VMware licensing costs entirely while delivering simplified operations.
Licensing and Cost: VMware's New Model vs. Alternatives
Under Broadcom's ownership, VMware vSphere has moved to a stricter per-core licensing model with significantly higher minimums. Even a small deployment must now purchase licenses covering at least 72 CPU cores (up from 16), and the free ESXi hypervisor has been eliminated entirely. These changes are causing sticker shock and prompting a fundamental re-evaluation.
| Platform | License Model | Hypervisor Cost | Key Cost Advantage |
|---|---|---|---|
| VMware vSphere | Per-core (72-core min) | Subscription required | — |
| Proxmox VE | None FREE | $0 | Zero license cost at any scale; optional low-cost support |
| KVM / Linux | None FREE | $0 | No per-core charges; commercial support via RHEL/SUSE optional |
| Hyper‑V | Included in Windows INCLUDED | Bundled with Windows Server | Datacenter Edition = unlimited VMs; covers hypervisor + guest OS |
| Nutanix AHV | Per-node SUBSCRIPTION | Included in Nutanix license | Flat per-node; no per-core or per-VM penalties; all-in-one |
Simpler licensing is a common theme among VMware alternatives. There are also fewer "gotchas" — VMware often charges extra for add-ons like distributed switching, backup integration, or advanced security features. With open-source options, those capabilities are included or available via free add-ons. Hyper-V includes many features in Windows without extra licensing, and Nutanix bundles storage clustering and backup in its base license.
Another cost consideration is support and updates. VMware support contracts can be pricey, and under Broadcom, some customers face stricter renewal policies with penalties for late renewals. Open-source options offer flexibility — run without a support contract or purchase modest community support. Microsoft and Nutanix include support as part of their subscription models.
Migration Considerations
Switching virtualization platforms is not a decision to take lightly. Beyond cost savings, you must ensure feature parity, ecosystem support, and seamless integration. Here are the key considerations for a successful migration:
Audit Feature Requirements
List every VMware feature you actively use (vMotion, HA, DRS, snapshots, distributed switches, GPU virtualization). Map each to the alternative's equivalent and identify gaps that are true deal-breakers vs. nice-to-haves.
Evaluate Ecosystem and Tooling
Check backup solutions, monitoring tools, and DR setups for compatibility. Most major vendors (Veeam, Commvault) support multiple hypervisors. Proxmox has built-in backup and Proxmox Backup Server. Nutanix offers integrated backup/restore and cloud connect.
Verify Infrastructure Integration
Confirm the new platform works with existing SAN/NAS storage (iSCSI, NFS, SMB3), networking (VLANs, trunking), and authentication (AD/LDAP). Check automation tools — Terraform, Ansible, and PowerShell have modules for Proxmox, Hyper-V, and Nutanix.
Plan the Migration Process
Export VMware VMs to OVF/OVA or VMDK format, then import into the new platform. Proxmox has a web-based import wizard; KVM uses qemu-img for VMDK→QCOW2 conversion; Nutanix offers the "Move" tool for automated migration; Microsoft provides Virtual Machine Converter documentation.
Train Your Team
Plan training sessions or hands-on labs. Admins may need to learn new CLI commands (PowerShell for Hyper-V, Linux shell for KVM/Proxmox) or new interfaces (Prism for Nutanix). Having 1–2 team members become subject-matter experts smooths the transition.
Execute a Phased Migration
Avoid "big bang" cutovers. Start with non-critical workloads, validate performance, surface integration issues, then gradually increase scope. Some organizations maintain a hybrid approach (smaller VMware footprint + new platform) during transition.
Need Help Navigating Broadcom's VMware Changes?
Redress Compliance provides independent advisory on Broadcom/VMware licensing, contract negotiations, and migration strategy — helping enterprises avoid traps and optimize costs.