PikoSystem IT engineering services
Network & Virtualization

Server Virtualization with VMware and Proxmox

One application per physical server means more power, more rack space and hardware that sits idle most of the day. With server virtualization those services share two or three hosts, and in a cluster the VMs from a failed host restart on the others. We choose the platform around your licensing budget and workloads, whether that is VMware vSphere, Proxmox VE or Hyper-V.

Tools & technology virtualization
  • VMware ESXi
  • VMware vCenter
  • Proxmox VE
  • Microsoft Hyper-V
  • Ceph
  • TrueNAS
  • Veeam Backup & Replication
  • Proxmox Backup Server
6work areas
5deliverables
4steps

What is Server Virtualization?

Server virtualization is running many virtual servers on a small number of physical hosts, so services share hardware, power and rack space and no longer sit on idle machines of their own. It suits organizations with several underused physical servers, an out-of-warranty server behind the accounting software, or VMware licensing that became too expensive. PikoSystem measures CPU, RAM, disk and IOPS, builds ESXi with vCenter, a Proxmox VE cluster or a Hyper-V failover cluster with HA, sets up shared storage or Ceph and virtual networking, deploys VM backups with Veeam or Proxmox Backup Server, and moves existing servers across. You end up with a capacity report, cluster and storage diagrams, test restore and host failure results, admin access and a runbook for creating VMs, snapshots and restores.

When you need Server Virtualization

  • We run five physical servers and most of them sit idle.
  • The server behind our accounting software is out of warranty.
  • VMware licensing got expensive and we're looking for an alternative.
  • Every new test environment means buying another server.

What Server Virtualization includes

01

Capacity planning

We measure CPU, RAM, disk and IOPS on current servers and size the hosts from that data.

02

Hypervisor and cluster build

We install ESXi with vCenter, a Proxmox VE cluster or a Hyper-V failover cluster, and enable HA for critical VMs.

03

Storage

Depending on budget, we set up shared SAN or NAS storage over iSCSI or NFS, or Ceph on the hosts themselves, and tune RAID and caching.

04

Virtual networking

Management, VM, storage and migration traffic are separated by VLAN or dedicated NICs, with vSwitches or Linux bridges configured to match.

05

VM backups

We deploy Veeam Backup or Proxmox Backup Server, set schedules and retention, and run a test restore.

06

Move to virtual

Physical servers or VMs from the old platform are moved to the new environment, and old hardware is retired only after testing.

What you get from Server Virtualization

  • Capacity report and recommended host specs
  • Cluster, storage and virtual network diagrams
  • Backup policy and test restore results
  • Admin access to vCenter or Proxmox
  • Runbook for daily tasks: creating VMs, snapshots and restores

Server Virtualization: a practical guide

How VMware licensing changed after Broadcom

Since Broadcom acquired VMware, perpetual licenses are no longer sold. vSphere now comes only as a subscription, bundled into offerings such as VMware vSphere Foundation and VMware Cloud Foundation. Pricing is per CPU core with a minimum core count per processor, so hosts with high-core CPUs cost noticeably more to license.

Organizations holding older perpetual licenses can keep running that version, but support and security patches depend on an active contract. That is why many teams now compare a fresh ESXi setup against moving to Proxmox or Hyper-V before renewing.

When does Hyper-V make sense?

If most of your servers run Windows, Hyper-V is a natural fit. A Windows Server Datacenter license covers unlimited Windows VMs on that host, while Standard covers two, and the Hyper-V role itself costs nothing extra.

HA requires a Failover Cluster with shared storage or Storage Spaces Direct, and S2D is available only in Datacenter edition. Management runs through Windows Admin Center or System Center VMM. For Linux-heavy estates and low-cost backups, Proxmox is more flexible.

Shared storage or Ceph? Design mistakes to avoid

Ceph spreads storage across the hosts' own disks and removes dependence on a single NAS, but it needs at least three nodes, a dedicated 10 GbE or faster network and enterprise SSDs with power loss protection. Consumer SSDs wear out quickly under Ceph's write pattern. RAID controllers must run in HBA mode so Ceph or ZFS sees the raw disks.

Shared SAN or NAS storage over iSCSI is simpler, but a single box with one controller becomes the failure point for the whole cluster. Multipath and two storage switches matter in that design.

Mistakes we often see after virtualizing

Snapshots are not backups. One left for weeks grows a large delta file and slows the disk. Keeping backups on the same storage as the VMs means a storage failure takes both.

Oversized VMs are common too. A VM with 16 vCPUs that uses four waits for cores to free up, and CPU Ready climbs. With HA, if no capacity is reserved for losing a host, VMs fail to restart on the remaining ones. Virtual domain controllers should also sync time from an external source.

How Server Virtualization works

  1. 01

    Review and capacity check

    We review current servers and services and measure resource use.

  2. 02

    Platform choice and design

    We compare platforms on licensing, features and cost with you and write the final design.

  3. 03

    Build and migrate

    Hosts, storage and backups are brought up, and VMs are moved in agreed time windows.

  4. 04

    HA test and handover

    We simulate a host failure, test a backup restore and hand over documentation.

Server Virtualization: frequently asked questions

Should we choose VMware or Proxmox?

VMware vSphere has mature management tooling, but its licensing costs rose after the sales model changed. Proxmox VE is open source and includes clustering, HA and backup without a mandatory license. The right choice depends on your applications, your team's skills and your budget.

How many servers does a Proxmox cluster need?

For a Proxmox cluster with HA we recommend at least three nodes to keep quorum. Two servers can work if you add a lightweight QDevice as the third vote.

Can our existing servers become virtualization hosts?

Yes, if the CPUs support hardware virtualization and there is enough RAM and disk. Very old servers are usually better used for backups or test environments. Capacity planning shows where each server fits.

Related searches

  • VMware virtualization
  • ESXi setup
  • vSphere and vCenter
  • Proxmox setup
  • Proxmox cluster
  • network virtualization services
  • Hyper-V

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