This episode reviews Proxmox's history since 2008, the Debian + KVM + LXC architectural foundation that forms its backbone, the reasons to choose Proxmox as an open-source all-in-one platform, as well as comparisons with VMware vSphere and Microsoft Hyper-V.

Before you create your first VM, it's important to understand where Proxmox came from and what makes it special. Episode 1 opens the long story of this platform: how a small company in Austria changed the open-source virtualization landscape, and why thousands of data centers and homelabs around the world choose it as the backbone of their infrastructure.
We will trace the history of Proxmox since 2008, break down the architecture that combines the Linux kernel, the KVM hypervisor, and the LXC container engine, and then examine the reasons to choose Proxmox over commercial alternatives. By the end of this episode, you'll have what it takes to explain Proxmox to others — an important soft skill for any administrator.
Proxmox VE was developed by Proxmox Server Solutions GmbH, a company based in Vienna, Austria. The first version was released in 2008 with a simple vision: to provide a powerful virtualization platform without locking its users into expensive licenses. From the very beginning, Proxmox took the full open-source path — with no features cut from the free version.
2008 : initial release, OpenVZ support
2010 : full KVM integration for full virtualization
2013 : integrated Ceph support for distributed storage
2018 : introduction of Proxmox Backup Server
2020 : SDN and modern network governance
2023 : Proxmox VE 8.x based on Debian 12 BookwormFrom version to version, Proxmox has kept adding enterprise-class capabilities without abandoning its principle of openness: all features are available to every user, with or without a subscription.
The Proxmox architecture stands on three main pillars. Debian Linux as the base operating system guarantees stability and a massive package ecosystem. KVM (Kernel-based Virtual Machine) provides full virtualization — virtual machines run with full hardware virtualization. Meanwhile, LXC provides operating-system-level containers that are far more lightweight.
Debian Linux -> host operating system
KVM -> full virtualization for Virtual Machines
LXC -> OS-level virtualization for containersThis combination is what sets Proxmox apart from other hypervisors: one platform manages two virtualization technologies at once. You can see the components running on your node with the pveversion command, which shows the Proxmox version, kernel, and loaded modules.
Proxmox is licensed under AGPL v3 and is 100 percent open-source. There is no "community" version stripped of features. The subscription Proxmox sells is only access to the more stable enterprise repository plus technical support — not a feature replacement. This means everything you learn in this series is fully applicable, with no paid upgrades down the road.
Proxmox combines several components that you would otherwise have to assemble yourself:
vzdump and Proxmox Backup Server.All of these components are managed from the same web UI, reducing the number of tools you have to learn and manage.
Unlike many hypervisors that require a CLI for common operations, Proxmox provides a complete web UI — creating VMs, configuring storage, writing firewall rules, even forming a cluster — all from the browser. This lowers the barrier to entry for new administrators without reducing the power available to experienced ones.
Every hypervisor has its own strengths, and the best choice depends on the context. Here's the pragmatic comparison:
| Aspect | Proxmox VE | VMware vSphere | Microsoft Hyper-V |
|---|---|---|---|
| License | AGPL v3, fully free | Commercial per socket | Windows Server license |
| Virtualization | KVM + LXC | ESXi (proprietary) | Hyper-V |
| Storage | ZFS, Ceph, NFS, iSCSI | vSAN, NFS, iSCSI | S2D, iSCSI, NFS |
| Management UI | Full web UI | vCenter (separate license) | Hyper-V Manager, SCVMM |
| Clustering | Built-in | Requires vSphere/vCenter | Failover Clustering |
| Ecosystem | Open-source, large community | Strong vendor support | Microsoft ecosystem integration |
Proxmox's main advantage is zero cost with comparable features for most workloads. Its downside: without a subscription, you rely on the community and documentation yourself. VMware excels at vendor support and a mature enterprise ecosystem, while Hyper-V excels if the organization is already fully Microsoft-based.
Info
Proxmox's strength is most evident for homelabs, small-to-medium data centers, and environments that favor open-source flexibility. For organizations with strict commercial support requirements, consider the subscription options or another platform.
Amid the rise of containers and Kubernetes, Proxmox has actually found a new position: as the foundation where VM and container workloads run. Many modern infrastructures place Kubernetes on top of Proxmox nodes, leveraging KVM as a flexible virtualization layer. This combination is what makes Proxmox expertise increasingly valuable in the job market.
You can verify all of the above claims yourself:
pveversion
cat /etc/apt/sources.listThe pveversion command shows the full Proxmox version along with the running kernel, and cat /etc/apt/sources.list shows the active repositories — two commands you'll use often to make sure the system is healthy. If the enterprise repository is still active and hasn't been replaced with pve-no-subscription, go back to episode 0 and fix it first.
One thing that often confuses people: Proxmox is "free" but also sells subscriptions. Distinguishing the two is important. The AGPL v3 license guarantees that all features are free forever. What the subscription sells is access to the more rigorously tested enterprise repository, as well as direct technical support from the Proxmox team.
Without a subscription, you still get all the features, but you can only use the pve-no-subscription repository and rely on community forums and documentation. Many data centers use a mixed model: a subscription on critical nodes, and the free repository on lab nodes.
Before buying a subscription, answer two questions:
If neither applies yet, run Proxmox with the free repository first. The decision can be changed at any time as your needs evolve.
Info
The installed version can be checked at any time with pveversion. Compare it with the release changelog on the official site to make sure you're running a supported version.
Episode 1 gave you context: Proxmox's history since 2008 at Proxmox Server Solutions GmbH, the three-pillar architecture of Debian + KVM + LXC, the reasons to choose Proxmox as an open-source all-in-one platform, and a comparison map with vSphere and Hyper-V.
The key takeaways:
In the next episode, episode 2, we will cover web UI navigation, node management, and system configuration — exploring the Datacenter View, Node View, noVNC and SPICE consoles, the Task Log, and then configuring DNS, timezone, NTP, system updates, and repositories directly from the browser. Open your Proxmox web UI, because hands-on practice starts now!