For the last two years, one topic has dominated the virtualization world: VMware licensing costs. After the licensing model changed following the acquisition, many companies saw their bills multiply and started looking for alternatives, with Proxmox at the top of the list. So as of 2026, how does Proxmox vs VMware license cost compare in actual numbers? In this post we explain both licensing models and calculate the yearly cost for three example scenarios at small, mid and large scale. If you're curious about the technical differences, see our What is Proxmox, Proxmox vs VMware post.
VMware's 2026 Licensing Model
The biggest change on the VMware side is that sales of perpetual licenses ended on December 11, 2023. It's subscription only now, and products are sold as large bundles. Pricing is per physical core, per year, with one important rule: every CPU is billed at a minimum of 16 cores. So even with an 8-core processor, you pay for 16 cores.
| Product | What's included | List price (per core/year) | vSAN entitlement |
|---|---|---|---|
| vSphere Foundation (VVF) | vSphere, vCenter, core management tools | ~$135 | 0.25 TiB per core |
| VMware Cloud Foundation (VCF) | Full stack: vSphere, vSAN, NSX, automation and management | ~$350–400 | 1 TiB per core |
According to independent reports, negotiated and multi-year deals can bring realized VCF prices down to around $185–275 per core; but small and mid-size companies usually can't get those discounts.
Proxmox's 2026 Licensing Model
Proxmox VE is fully open source and free with all its features. Clustering, high availability, live migration, Ceph, backups... none of it is locked behind a paid tier. The only paid thing is an optional subscription: access to the enterprise update repository and official technical support. Pricing is not per core but per CPU socket, per year.
| Plan | Price (per socket/year) | Support | Response time (critical) |
|---|---|---|---|
| No subscription | €0 | Community forum, free update repository | — |
| Community | €120 | Forum only; enterprise repository access | — |
| Basic | €370 | 3 support tickets per year | 1 business day |
| Standard | €550 | 10 support tickets per year | 4 hours |
| Premium | €1,100 | Unlimited tickets, 24/7 | 2 hours |
The key difference: on Proxmox, whether your processor has 16 cores or 96 doesn't change the price. On VMware, every new core goes straight onto the bill. Since core counts on new servers keep climbing, this gap grows alot every year.
Scenario Calculations
The calculations below use list prices on a yearly basis. For VMware we used total cores × price per core, for Proxmox total sockets × price per socket. For VCF we took the low end of the list range ($350).
1. Small scale: 2 servers, 1 CPU each (16 cores)
32 cores and 2 sockets in total. A small company's two-server virtualization setup.
| Option | Calculation | Yearly cost |
|---|---|---|
| VMware vSphere Foundation | 32 × $135 | $4,320 |
| VMware Cloud Foundation | 32 × $350 | $11,200 |
| Proxmox (no subscription) | — | €0 |
| Proxmox Basic | 2 × €370 | €740 |
| Proxmox Standard | 2 × €550 | €1,100 |
2. Mid scale: 3 servers, 2 CPUs each (32 cores per CPU)
192 cores and 6 sockets in total. A typical enterprise cluster.
| Option | Calculation | Yearly cost |
|---|---|---|
| VMware vSphere Foundation | 192 × $135 | $25,920 |
| VMware Cloud Foundation | 192 × $350 | $67,200 |
| Proxmox Basic | 6 × €370 | €2,220 |
| Proxmox Standard | 6 × €550 | €3,300 |
| Proxmox Premium | 6 × €1,100 | €6,600 |
3. Large scale: 10 servers, 2 CPUs each (48 cores per CPU)
960 cores and 20 sockets in total. A large organization or hosting provider.
| Option | Calculation | Yearly cost |
|---|---|---|
| VMware vSphere Foundation | 960 × $135 | $129,600 |
| VMware Cloud Foundation | 960 × $350 | $336,000 |
| Proxmox Standard | 20 × €550 | €11,000 |
| Proxmox Premium | 20 × €1,100 | €22,000 |
Looking at the mid scenario over 3 years: you'd pay roughly $77,760 with VMware vSphere Foundation and roughly $201,600 with VCF, while Proxmox Standard stays around €9,900. For most companies, that gap is big enough to pay for the migration project within the first year.
Beyond the License: Hidden Costs
The license price is only part of the picture. When calculating total cost of ownership (TCO), also look at:
| Item | VMware | Proxmox |
|---|---|---|
| Backup software | Usually a separate paid product (e.g. Veeam) | Proxmox Backup Server is free (optional subscription) |
| Distributed storage | vSAN; entitled capacity depends on bundle and core count | Ceph built in and free |
| Network virtualization | NSX (in VCF) | Built-in SDN (VLAN/VXLAN) |
| Hardware compatibility | Tied to the compatibility list (HCL); older servers may not be supported | Almost any hardware Linux supports |
| Training | Teams are usually already experienced | Requires Linux skills; a short ramp-up |
| Migration effort | None (existing setup) | A one-time migration project |
| As you scale | Every new core adds license cost | Optional subscription per new socket, core count doesn't matter |
On the backup side we work with both Veeam and Proxmox Backup Server; to move your existing backup setup, see our Veeam consulting and Proxmox Backup Server consulting pages.
Stay on VMware or Move to Proxmox?
Staying on VMware may make sense if:
- You just renewed a long-term, discounted contract,
- The commercial software you use officially supports only VMware,
- You depend heavily on VCF-specific features like NSX or advanced DRS.
Moving to Proxmox makes sense if:
- Your renewal quote is over budget,
- You're moving to new, high-core-count servers (on VMware the per-core cost multiplies),
- Your team has Linux experience, or is open to getting it,
- You don't want to pay seperate licenses for backup and storage too.
How to Plan the Migration
In short: take inventory, test with a few non-critical VMs, move VMs in stages with Proxmox's ESXi import tool, set up backups on Proxmox Backup Server and verify each step. We covered the step-by-step process in our previous post. If you'd rather not do it in-house, our Proxmox consulting team takes on the whole process from inventory to setup and migration; if you choose to stay on VMware, we support that too with VMware consulting. To try Proxmox without investing in physical servers, you can get started quickly on our NVMe-backed dedicated servers.
Frequently Asked Questions
Is Proxmox really free?
Yes. Proxmox VE is open source and can be used with all its features, including clustering, high availability, live migration, Ceph and backups, for free. The only paid item is an optional yearly per-CPU-socket subscription for the enterprise update repository and official support.
Can I keep using my old VMware perpetual license?
Existing perpetual licenses keep working, but new perpetual license sales ended in December 2023 and support and update access for these licenses is increasingly limited. Running for long periods without security updates is risky.
What is VMware's 16-core rule?
VMware subscriptions are priced per physical core, and every CPU is billed at a minimum of 16 cores. So an 8-core processor is still licensed as 16 cores, while a 32-core processor is licensed as 32 cores.
What happens if I don't buy a Proxmox subscription?
No features are turned off. You keep using the free update repository and see a subscription reminder in the web interface. For production environments, a subscription is recommended for more thoroughly tested updates and official support.
In Short
In 2026, with per-core subscriptions and a 16-core minimum per CPU, VMware has become an expensive option, especially on new high-core-count servers. Proxmox offers every feature for free and only prices its optional support subscription per socket; even in a mid-size environment the yearly difference can reach tens of thousands of dollars. For the right decision, run the numbers with your own core and socket counts and get current quotes; if you'd like to do that together, drop us a message.
Price sources: Proxmox VE official pricing page; for VMware, independent licensing advisory reports tracking Broadcom list prices (October 2026).