What Is Proxmox, and Why Is It Garnering Interest Among SMBs?

Virtualization has revolutionized the way small and midsize businesses (SMBs) manage their IT environments, enabling them to boost efficiency, enhance security, scale operations and ensure business continuity — all while driving down their costs. By virtualizing servers, storage, networks, desktops and applications, SMBs today optimize their resources, boost flexibility and adapt more quickly to changing market demands.

However, shifting dynamics in the hypervisor market — particularly following market leader VMware’s acquisition by Broadcom — has brought a significant challenge for SMBs and their managed service providers (MSPs). With the imminent risks of potential price hikes and growing enterprise focus, many SMBs are now actively exploring alternatives that better align with their budgets and needs. This is where an open-source hypervisor solution like Proxmox Virtual Environment (Proxmox VE) has emerged as a contender, offering powerful, cost-effective virtualization without the enterprise overhead.

In this blog post, we’ll explore Proxmox, how it works and its key benefits for SMBs. We’ll also discuss the importance of protecting Proxmox workloads and how Datto BCDR can help MSPs secure their clients’ Proxmox environments.

What is Proxmox?

Proxmox Virtual Environment (Proxmox VE) is an open-source virtualization platform that enables businesses to manage virtual machines (VMs), containers and software-defined storage (SDS) in a single, unified interface. Released in 2008, Proxmox has grown into a powerful and versatile hypervisor solution adopted by organizations looking for cost-effective virtualization.

What sets Proxmox apart is its open-source nature, which gives SMBs full access to the platform’s source code and features without the burden of licensing fees. This significantly reduces operational costs while still delivering enterprise-grade capabilities. While Proxmox is free to use, businesses that need professional support can opt for paid subscription plans, which provide access to the Proxmox Enterprise Repository and premium technical support. This ensures that companies can get the help they need without the steep costs associated with proprietary solutions.

Additionally, Proxmox supports both kernel-based virtual machines (KVM) and Linux containers (LXC), allowing businesses to efficiently allocate resources based on specific workload needs. This flexibility, combined with a user-friendly web interface, makes Proxmox a leading choice for SMBs looking to modernize their IT environments without sacrificing control or performance.

What is Proxmox used for?

Proxmox VE is widely used in enterprise virtualization, offering a range of solutions that streamline infrastructure management. Below are the key use cases for which Proxmox is commonly deployed:

VMs and containers

Proxmox allows for the creation and management of both VMs (using KVM) and containers (using LXC). VMs simulate physical hardware, while containers are lightweight and share the same operating system (OS) kernel, allowing for more efficient use of resources. This dual support offers businesses the flexibility to host a wide array of applications, from legacy systems to microservices.

SDS and networking

Proxmox integrates seamlessly with SDS and software-defined networking (SDN), enabling scalable and flexible storage and networking solutions. Its storage options include integration with ZFS, Ceph and other third-party storage systems, providing a strong foundation for high-performance data management. On the networking side, it supports virtual local area networks (VLANs), bridges and virtual switches to ensure that your virtual infrastructure runs smoothly.

High-availability (HA) clustering

Proxmox VE offers high-availability (HA) clustering, which ensures that your virtual machines and containers remain operational even if some components of your hardware fail. This is achieved by pooling multiple nodes together into a cluster, which monitors the health of each node and can automatically migrate VMs or containers to functioning hardware when necessary.

Out-of-the-box tools

Proxmox VE comes equipped with several out-of-the-box tools that make managing a virtual environment easier. These include a web-based management interface, built-in backup and restore options, role-based user access and support for two-factor authentication (2FA). These features are designed to simplify complex tasks and ensure secure, efficient management of your virtual infrastructure.

Is Proxmox free?

One of Proxmox’s key advantages is its open-source nature, meaning the core product is free to use under the GNU Affero General Public License (AGPL). However, businesses that require professional support can purchase a subscription that grants access to the Proxmox Enterprise Repository, which offers more stable updates and technical support. These subscriptions are priced based on the number of physical servers an organization uses, making Proxmox a cost-effective solution for businesses of all sizes.

How does Proxmox work?

Proxmox VE operates by utilizing two key virtualization technologies: KVM for full virtualization and LXC for lightweight container-based virtualization. This dual approach allows Proxmox to efficiently run isolated instances of operating systems and applications, giving businesses the flexibility to handle different types of workloads on a single platform.

The platform’s web-based management interface makes it easy for users to set up, configure and monitor VMs, containers and storage resources from any device. This interface provides full control over resource allocation, enabling users to create, manage and scale VMs and containers with just a few clicks.

Proxmox also integrates with various storage options, including local storage, network file system (NFS) storage and Ceph, allowing businesses to choose the best setup for their needs. Additionally, features like built-in backup, snapshots and HA clustering ensure that data and workloads remain secure and operational, even in the event of hardware failure.

What is the advantage of Proxmox?

Proxmox’s open-source nature, combined with a user-friendly interface and robust feature set, allows SMBs to virtualize their operations efficiently and affordably. Let’s look at some of the key benefits for SMBs:

• Cost-effective: Proxmox’s open-source nature eliminates licensing fees, making it a budget-friendly option. Paid support is available at a low cost for businesses needing professional assistance.
• Flexible and versatile: Proxmox supports both KVM virtual machines and LXC containers, allowing businesses to tailor virtualization to their needs — from legacy apps to lightweight containers.
• Easy management: With its intuitive web-based interface, Proxmox simplifies managing VMs, storage and networks. Even users with minimal experience can manage complex infrastructures effortlessly.
• High availability: Proxmox offers built-in high-availability clustering, ensuring your VMs and containers stay online even during hardware failures.
• Scalable: Proxmox grows with your business. You can easily add more VMs, storage or nodes as your infrastructure needs expand, without added complexity or cost.
• Robust user community and regular updates: Proxmox boasts an active and knowledgeable user community, which provides a wealth of resources, tutorials and support. Additionally, the platform receives frequent updates that introduce new features and address any security vulnerabilities, ensuring that businesses always have access to the latest advancements.
• Technical support and training courses: For businesses that need additional guidance, Proxmox offers professional support and access to a range of training courses. These courses help IT teams gain in-depth knowledge of the platform, while the support options ensure that help is available whenever it’s needed.

How to back up Proxmox

Backing up a Proxmox environment is not just a best practice — it’s essential for ensuring data integrity and business continuity. VMs and containers often run critical applications and store valuable data, making them vulnerable to human errors or cyberattacks. Without a solid backup strategy, a single failure could lead to significant disruptions and potential data loss.

There are two main ways to back up Proxmox environments, but the effectiveness of these solutions varies.

Proxmox Backup Server

Proxmox Backup Server is the native solution designed to back up VMs and containers within the Proxmox ecosystem. While it integrates seamlessly and offers fast, efficient backups, it has several limitations.

The system often requires manual configuration, which can become time-consuming as environments grow. Additionally, scalability can be a concern, as larger or more complex infrastructures may outgrow Proxmox Backup Server’s capabilities. Moreover, the built-in features may lack the advanced automation and recovery options needed for comprehensive disaster recovery planning.

Third-party backup solutions

For businesses seeking more robust protection, third-party backup solutions offer enhanced security, automation and scalability. Solutions like Datto BCDR provide automated backups, a dedicated backup appliance to secure data outside the virtual infrastructure, faster recovery times and broader system compatibility for Proxmox workloads. These third-party options include features that go beyond what Proxmox Backup Server can offer, ensuring better data protection and easier management of backup operations.

What are the backup best practices for Proxmox users?

Below are a few strategies that Proxmox users should implement to keep their virtual machines and containers fully protected:

Understand RTO/RPO requirements: Recovery time objective (RTO) and recovery point objective (RPO) are critical metrics in shaping your backup strategy. RTO refers to how quickly data needs to be recovered after a failure, while RPO defines how much data loss is acceptable. Businesses should align their backup policies to meet these requirements, ensuring backups are frequent enough to protect critical workloads and that recovery can happen within the required timeframes.

Follow the 3-2-1 backup strategy: One of the most effective backup strategies is the 3-2-1 rule — keep at least three copies of data, stored on two different types of media, with one copy off-network or off-site. This ensures that, in the event of a major disaster like a cyberattack or physical damage to on-site equipment, a clean backup is always available in a secure location.

Regular recovery testing: It’s not enough to just have backups — organizations need to be certain that those backups will work when disaster strikes. Regularly test recovery processes, including running disaster recovery drills, to verify that backups are functioning properly and can be restored quickly. These drills are vital for identifying weaknesses in a disaster recovery plan before an actual event occurs.

Leverage Datto BCDR for reliable backups: Automating backup processes and ensuring backups are taken both locally and off-site is critical for keeping Proxmox environments secure. With Datto BCDR, you can automate reliable local backups, maintain secure backup copies off-site and have a robust disaster recovery plan in place. Datto’s comprehensive solution ensures that Proxmox workloads are protected across all scenarios.

How can Datto help with Proxmox backup?

Datto BCDR is the ideal choice for MSPs looking to secure their clients’ Proxmox environments. By offering robust backup, recovery and long-term data protection, Datto BCDR ensures that Proxmox users can secure critical workloads and recover quickly from any disaster. Whether it’s backing up virtual machines running Windows or Linux distributions on Proxmox, Datto delivers comprehensive coverage, allowing businesses to maintain business continuity and eliminate downtime.

Here’s how Datto BCDR provides full protection for Proxmox environments:

Backup support for Windows and Linux on Proxmox: Datto BCDR supports backing up virtual machines running various Windows OS versions and Linux distributions on Proxmox. This flexibility allows businesses to protect a wide range of workloads within their virtualized environment, ensuring complete data resilience.

Recover data with Datto BCDR: Datto BCDR offers multiple recovery options to fit any disaster scenario.

• Files and folders: Quickly recover individual files and folders to ensure minimal disruption to business operations.
• Local virtualization: In the event of a disaster, Datto BCDR enables local virtualization using the Datto appliance. This allows businesses to spin up their Proxmox VMs locally, minimizing downtime.
• Replication to Datto Cloud: Datto BCDR replicates backups to the secure, immutable Datto Cloud for long-term retention. This provides redundancy outside of the primary site and ensures that critical data is protected even in the event of a complete site failure.
• Cloud virtualization: For disaster recovery, Datto BCDR can spin up protected virtual machines in the Datto Cloud. This ensures that businesses can continue operations remotely, even when their on-premise infrastructure is compromised.
• Export to raw disk format: Datto BCDR allows users to export backups to a raw disk format, which is the native disk format for KVM hypervisors like Proxmox. This makes it easy to restore virtual machine images back to Proxmox. It’s important to note here that exporting to the raw disk format is only possible from the local Datto BCDR device. For exports from the Datto Cloud, virtual hard disk (VHD) or virtual machine disk (VMDK) formats are supported, and Proxmox is capable of importing and converting these formats as needed. For more information, read this blog on vDisk Restore Support for KVM Hypervisors or watch a recovery demo (demo starts around 13:45).

Final thoughts

Proxmox stands out as a powerful, flexible and cost-effective virtualization platform, making it an ideal solution for SMBs looking to modernize their IT infrastructure. By integrating Datto BCDR with Proxmox, MSPs can ensure that their clients’ Proxmox environments are completely protected with automated backups, secure off-site replication and fast disaster recovery.

Make your client environments resilient to both everyday disruptions and major disasters. Book a demo to discover how Datto can help you completely secure your clients’ IT environments.