Proxmox vs ESXi vs Unraid: Choosing Your Hypervisor

So you've got some hardware sitting around, maybe an old desktop or a shiny new server, and you want to run multiple operating systems on it. Welcome to the wonderful world of virtualization. But here's the thing: picking the right hypervisor for your homelab can feel like choosing a religion. People have strong opinions.

Let's break down the three most popular options for homelabbers: Proxmox VE, VMware ESXi, and Unraid. Each has its own philosophy, strengths, and quirks. By the end of this, you'll know which one fits your needs.

What Even Is a Hypervisor?

Quick refresher: a hypervisor is software that lets you run multiple virtual machines (VMs) on a single physical machine. Instead of dedicating one server to one task, you can run Windows, Linux, a NAS, a media server, and a Kubernetes cluster all on the same box. It's like having a whole datacenter in your closet.

There are two types: Type 1 (bare-metal) runs directly on hardware, while Type 2 runs on top of an existing OS. For serious homelab work, you want Type 1. All three options we're discussing today fall into this category, though Unraid blurs the line a bit.

Proxmox VE: The Open Source Powerhouse

Proxmox Virtual Environment is the darling of the homelab community, and for good reason. It's based on Debian Linux and combines KVM virtualization with LXC containers in one slick web interface.

The Good Stuff

• Completely free. No license keys, no feature restrictions, no "free tier" nonsense. You get everything.
• Fantastic web UI. Managing VMs and containers is genuinely pleasant. Create, clone, snapshot, migrate... it's all there.
• LXC containers. These are lighter than full VMs and perfect for running Linux services. Way less overhead than spinning up a whole virtual machine for a simple web server.
• ZFS support built in. If you care about data integrity (you should), Proxmox makes ZFS easy.
• Clustering. Got multiple nodes? Proxmox can manage them as a single cluster with live migration between hosts.
• Active community. Forums, subreddits, YouTube tutorials... help is everywhere.

The Not-So-Good

• Subscription nag. Every time you log in, there's a popup asking you to subscribe. It's not required, but it's annoying. You can disable it with a simple script.
• Learning curve. If you've never touched Linux, there's stuff to learn. Not impossible, but expect some googling.
• GPU passthrough can be fiddly. It works, but getting NVIDIA cards passed through to VMs sometimes requires patience and arcane BIOS settings.

Licensing and Cost

Free. Totally free. Proxmox AG offers paid subscriptions starting at €110/year per socket for enterprise support and access to the tested "enterprise" repository. For homelabs? Unnecessary. The "no-subscription" repository works perfectly fine.

Hardware Requirements

Proxmox runs on pretty much anything with a 64-bit CPU. Officially, you need:

• 64-bit CPU (Intel VT-x or AMD-V for virtualization)
• 1GB RAM minimum (but realistically, 8GB+ for actual use)
• Any storage (SSD recommended for the OS)

That old Dell Optiplex from 2015? It'll run Proxmox just fine.

VMware ESXi: The Enterprise Standard

ESXi is what the big companies use. It's polished, mature, and battle-tested in datacenters worldwide. VMware dominated the virtualization market for years, and ESXi is their bare-metal hypervisor.

The Good Stuff

• Rock solid stability. This thing just works. VMware has decades of refinement behind it.
• Industry standard. Learning ESXi is actually useful for your career. It's everywhere in enterprise IT.
• Excellent hardware support. VMware works with vendors to ensure compatibility. Drivers are rarely an issue.
• vSphere ecosystem. If you add vCenter, you get powerful management tools, automation, and clustering.

The Not-So-Good

• Licensing nightmare. Broadcom acquired VMware in 2023 and things got messy. The free tier was effectively killed. You now need a subscription.
• No more perpetual licenses. Everything is subscription-based now, and prices went up significantly.
• Hardware compatibility list is strict. ESXi can be picky about network cards and storage controllers. Consumer hardware often isn't supported.
• Web client is bloated. Compared to Proxmox's snappy interface, the vSphere client feels sluggish.

Licensing and Cost

Here's where it gets ugly for homelabbers. Before the Broadcom acquisition, VMware offered a free version of ESXi with some limitations. That's gone now.

Current options:

• vSphere Foundation: Starts around $8,400/year for 8 cores minimum. Yeah, that's not a typo.
• VMUG Advantage: $200/year gets you access to most VMware products for "evaluation." This is the homelab workaround, but it's still $200 annually.

For homelabs, the value proposition has basically evaporated unless you need it for career development.

Hardware Requirements

• 64-bit x86 CPU (check the HCL for specific models)
• 4GB RAM minimum (8GB+ recommended)
• Boot disk: USB, SD, or SSD (1GB minimum)
• Network adapter from the HCL (this trips people up)

That random Realtek NIC in your desktop? Probably won't work without community drivers.

Unraid: The Storage-First Approach

Unraid is a bit different. It started as a NAS operating system and grew into something that also does virtualization. If your primary goal is storing a ton of media with VMs as a bonus, Unraid might be your jam.

The Good Stuff

• Incredible storage flexibility. Mix and match drives of any size. No need for identical disks like traditional RAID.
• Parity protection. Lose a drive, no problem. Rebuild from parity. You can even survive two drive failures with dual parity.
• Docker made easy. The Community Applications plugin is basically an app store for self-hosted software. Click to install Plex, Nextcloud, whatever.
• Gorgeous UI. Seriously, it looks good. Everything is accessible from the web interface.
• Fantastic community. SpaceInvaderOne's YouTube tutorials alone are worth the price of admission.
• GPU passthrough works well. Unraid has a reputation for making passthrough less painful.

The Not-So-Good

• It costs money. Not free. Licenses are one-time purchases, but still.
• Array performance is meh. Single drive speeds unless you use cache. For most homelab use, this is fine. For VMs on the array, it's noticeable.
• No clustering. Single node only. If you want multiple servers working together, look elsewhere.
• Boots from USB. The OS runs in RAM from a USB stick. If that stick dies, you're restoring from backup. (Pro tip: keep backups of your flash drive.)

Licensing and Cost

One-time purchase. No subscriptions.

• Basic: $59 (up to 6 storage devices)
• Plus: $89 (up to 12 storage devices)
• Pro: $129 (unlimited storage devices)

For what you get, these prices are reasonable. And they include lifetime updates for that major version.

Hardware Requirements

• 64-bit CPU (Intel or AMD)
• 2GB RAM minimum (but 8GB+ for VMs and Docker)
• USB flash drive for the OS (high quality recommended)
• HBA or SATA ports for drives

Unraid is very hardware-friendly. Most consumer gear works out of the box.

Head-to-Head Comparison

So, Which One Should You Choose?

Here's my honest take based on different scenarios:

Choose Proxmox if...

• You want the most bang for zero bucks
• You're running lots of VMs and containers
• You plan to have multiple nodes eventually
• You're comfortable with Linux (or want to learn)
• You want ZFS without extra complexity

Choose ESXi if...

• You're studying for VMware certifications
• Your job uses VMware and you need practice
• You already have VMUG Advantage
• You have compatible enterprise hardware
• Money isn't a concern (must be nice)

Choose Unraid if...

• Storage is your primary concern
• You have a bunch of mismatched drives
• You want the easiest Docker experience
• You prefer GUI over command line
• You're building a media server that also runs some VMs

My Personal Recommendation

For most homelabbers in 2024, Proxmox is the answer. It's free, powerful, and the community support is incredible. The combination of VMs and LXC containers gives you flexibility that's hard to beat.

If your main goal is building a NAS with tons of storage for movies and TV shows, and VMs are secondary, Unraid is worth the money. The storage flexibility and Docker app ecosystem are genuinely excellent.

ESXi? Unless you have a specific career reason, it's hard to recommend post-Broadcom. The value just isn't there anymore for homelab use.

Final Thoughts

Here's the secret nobody tells you: you can always change your mind later. Reinstalling a hypervisor takes an afternoon. Your VMs can be backed up and migrated. Don't stress too much about picking the "perfect" option.

Start with whatever sounds most interesting. Build something. Break it. Learn from it. That's what homelabbing is all about.

Got questions about any of these options? Drop a comment below or join our Discord. Happy virtualizing!