What is Proxmox? Virtualization explained for developers

Proxmix is an open-source, self-hosted virtualisation solution for running virtual machines (VMs) and containers from a single web interface.

It’s growing in popularity among developers and sysadmins as a free alternative to VMware and Hyper-V.

This article explains what Proxmox does, how it compares to paid tools, and why it’s ideal for dedicated server environments.

Understanding virtualization

Virtualization is the process of running multiple operating systems on a single physical machine.

Instead of dedicating one server to one task or OS, virtualization uses a software layer called a hypervisor to divide hardware resources into separate, independent units.Each of these units can run its own operating system and applications, just as if it were a standalone computer.
Both virtual machines and containers make this possible, but they operate at different layers. 

Virtual machines behave like a physical computer. Each ones runs a full operating system, complete with virtual CPU, memory, and storage

Containers, by contrast, virtualize at the application level. They don’t replicate hardware like virtual machines, but rather share the same OS kernel while keeping applications and their dependencies neatly separated in a lightweight, portable environment.

Proxmox supports both technologies through KVM (for virtual machines) and LXC (for Linux containers), allowing users to choose between full virtualization and lightweight containerization depending on their needs.

What is proxmox and how does it work?

Proxmox Virtual Environment (VE) is an open-source server virtualization management platform that brings together powerful, enterprise-grade virtualization technologies under one roof.

It’s designed to help developers, sysadmins, and businesses run multiple virtual machines (VMs) and containers on a single physical server — all managed through an intuitive web-based interface.
At its core, Proxmox VE combines two complementary virtualization technologies:

• 
  KVM (Kernel-based Virtual Machine) – full hardware virtualization for running operating systems like Windows or Linux in isolated environments.
• LXC (Linux Containers) – lightweight, efficient virtualization for deploying multiple applications that share the same OS kernel but remain securely isolated.

By integrating both on one platform, Proxmox helps users manage their workloads effectively. 

Key features

• 
  Cluster management – Increase availability, distribute workloads and ensure business continuity by combining multiple Proxmox servers into a cluster.
• Storage and backup options – Proxmox supports local storage, shared network storage (NFS, iSCSI, Ceph, and ZFS), and integrates with Proxmox Backup Server for fast, incremental backups and disaster recovery.
• API and CLI Tools – A comprehensive REST API and command-line interface let developers automate tasks, integrate with third-party tools, and customize their environments.
• Open-source community support – Backed by a strong global community and detailed documentation, Proxmox VE benefits from constant updates, transparency, and a rich ecosystem of user-driven innovation.

How to install Proxmox

1. Download the ISO image – visit the Proxmox VE Downloads page and download the latest Proxmox VE ISO installer.
2. Create a bootable installation medium – use a tool like Rufus (Windows), Etcher, or dd (Linux/macOS) to write the ISO to a USB stick or DVD. Insert the installation medium into the target server.
3. Boot and start installation – boot from the USB/DVD and select “Install Proxmox VE” from the boot menu. The installer will load a graphical setup wizard.
4. Follow the installation wizard – Accept the license agreement, choose the installation drive, and select a file system (ZFS is recommended). Set your location and time zone, create a root password with an email for alerts, and configure the network by choosing the main interface, hostname, and IP address.
5. Complete installation – The installer will copy files and install Proxmox VE on your chosen drive. Once complete, remove the installation medium and reboot the server. When prompted, log in locally or through the web UI.
6. Access the web interface –  Open a browser and go to https://<your-server-ip>:8006. Log in with username and password.
7. Update and configure repositories – Update package lists and upgrade packages in bash: apt update && apt full-upgrade.Configure Proxmox’s enterprise or no-subscription repositories depending on your use case.
8. Connect storage and create VMs – Add local or shared storage (ZFS, LVM, Ceph, NFS, SMB, or iSCSI). Create and configure virtual machines (KVM) or lightweight containers (LXC) via the web interface.
9. Set up clusters and backups – Join multiple nodes to create a high-availability cluster using pvecm create <clustername> in bash. Use the built-in backup scheduler or integrate Proxmox Backup Server for deduplicated, encrypted backups.

Proxmox vs VMware and Hyper-V

When to use Proxmox VE

Developers testing multiple environments

Proxmox is a fast, low-cost way to create and manage multiple isolated environments on a single machine. That makes it a god-send for developers. Containers make it easy to test code, dependencies, or CI/CD pipelines in lightweight, reproducible setups. Whereas snapshots and backups allow developers to roll back changes safely, giving you freedom to experiment without the risk of data loss. 

Small and medium-sized businesses internal infrastructure

Virtualisation solutions like Proxmox offer practical ways to do more with limited IT resources. They allow SMBs to consolidate their workflows into a single, powerful server, instead of running separate servers for email, databases, file storage etc. This cuts down on hardware costs and simplifies infrastructure management. 

Proxmox VE is especially well-suited for SMBss. It’s open-source, stable, and license-free, making it an affordable alternative to platforms like VMware. Businesses can deploy virtual machines for Windows and Linux applications alongside containers for lightweight services, all through an easy-to-use web interface. This flexibility lets SMBs:

• Run multiple services securely on one system, isolating workloads to improve uptime and security.
• Simplify backups and disaster recovery using Proxmox Backup Server or built-in snapshot tools.
• Scale up gradually by adding more nodes or resources as the business grows.
• Reduce vendor dependency while maintaining full control over data and configurations.

Educational or lab setups for learning virtualization

Proxmox VE is widely used in training labs, classrooms, and home labs for IT professionals or students who want hands-on experience with virtualization. Because it’s open-source and easy to install, learners can explore virtualization, networking, and storage concepts without vendor lock-in. Teachers and lab administrators appreciate the ability to clone, reset, or rebuild virtual machines instantly.

Self-hosted Infrastructure for security-conscious teams

Teams that prioritize data privacy and control often turn to Proxmox as a foundation for self-hosted infrastructure. By deploying Proxmox on a dedicated server, organizations can host internal tools, databases, or even private cloud services within their own environment — ensuring sensitive data never leaves their control. The platform’s support for encryption, firewalls, and backup integration with Proxmox Backup Server enhances both security and reliability.

Hosting providers offering flexible VM management

For web hosting companies and managed service providers, Proxmox delivers enterprise-level control without proprietary restrictions. Providers can create and manage virtual machines or containers for customers, allocate resources dynamically, and monitor performance through the integrated dashboard or API. With its clustering and storage options, Proxmox makes it simple to scale infrastructure as customer demand grows — all while keeping costs predictable and performance consistent.

Finding the best Proxmox hosting  

To get the most out of Proxmox Virtual Environment (VE), you’ll want to run it on dedicated server hardware. While it’s possible to install Proxmox on a virtual private server, dedicated servers provide the raw performance, full resource control, and hardware-level access Proxmox needs to manage multiple virtual machines and containers efficiently. With a dedicated setup, all CPU cores, memory, and storage are yours to allocate.

What to look for

When choosing a hosting provider for your Proxmox deployment, look for the following key features:

• Powerful hardware – modern multi-core processors, plenty of RAM, and high-speed NVMe or SSD storage ensure smooth virtualization performance.
• Flexible storage options – support for RAID, ZFS, or external storage systems like NFS and Ceph is essential for redundancy and scalability.
• Reliable networking – high bandwidth and low-latency connections keep your VMs responsive, especially if you’re running web applications, game servers, or remote desktops.
• Virtualization compatibility – make sure your server and hosting provider fully support KVM and LXC, the core technologies behind Proxmox VE. BIOS-level virtualization features (Intel VT-x or AMD-V) should be enabled by default.
• Transparent management – Root or IPMI access gives you total control over your environment, perfect for installing and managing Proxmox directly

Use Proxmox with dedicated servers

Running Proxmox on a dedicated server lets you build a self-hosted virtualization platform that’s both powerful and secure. Developers can experiment freely with different systems, sysadmins can isolate production and staging environments, and SMBs can centralize their apps while maintaining full control over resources and data.

If you’re looking to deploy Proxmox on reliable infrastructure, check out Namecheap Dedicated Servers. You’ll get enterprise-grade hardware, full root access, and flexible configurations ideal for managing virtual machines and containers under one intuitive platform.

Final Thoughts

Proxmox Virtual Environment stands out as a powerful, open-source alternative to proprietary platforms like VMware and Hyper-V. It combines full virtual machines and lightweight containers on one unified platform to bring flexibility and control to developers, sysadmins, and SMBs.

Whether you’re building a home lab, testing applications across multiple environments, or consolidating workloads for a business, Proxmox delivers the reliability, scalability, and ease of use needed to run virtualized infrastructure with confidence.

If you’re ready to try Proxmox for yourself, explore Namecheap to find hardware optimized for running virtual machines and containers.