Proxmox — Complete Guide and How-To Index

1. Why Use Proxmox VE?

2. Virtual Machines vs LXC Containers

3. Getting Started with Proxmox

4. What Can You Run on Proxmox?

5. Proxmox Minimum Hardware Requirements

Proxmox Virtual Environment (Proxmox VE) is an open-source server virtualisation platform built on Debian Linux, combining two industry-standard technologies — KVM (Kernel-based Virtual Machine) for full virtual machines and LXC (Linux Containers) for lightweight containerised workloads. It is developed and maintained by Proxmox Server Solutions GmbH and is available completely free of charge, with an optional paid enterprise subscription for those who require commercial support. Proxmox VE has become one of the most popular choices for home lab enthusiasts and small businesses alike, largely because it delivers enterprise-grade virtualisation features through a clean, browser-based management interface without requiring a costly licence. Whether you are consolidating several old servers into one machine or building your first home lab, Proxmox VE gives you everything you need to get started.

Why Use Proxmox VE?

Proxmox VE lets you run multiple virtual machines and containers on a single physical server, making it ideal for anyone who wants to consolidate hardware without sacrificing flexibility. Instead of running one service per machine, you can host your NAS, firewall, media server, and home automation system all on the same box, each isolated from the others.

The platform is free and open source under the AGPL licence. An enterprise subscription is available from Proxmox for organisations that need guaranteed support and stable update repositories, but it is entirely optional — the community repository gives home lab users and small businesses full access to every feature at no cost.

Management is handled entirely through a web-based GUI that you access from any browser on your network, with no need to install a separate client. Built-in features include VM and container snapshots, live migration between cluster nodes, role-based access control, and software-defined storage and networking. The Proxmox community forums and subreddit are large and active, which means finding answers to common questions is rarely difficult. For UK small businesses looking to reduce their hardware footprint, or home lab builders who want a production-grade hypervisor without the price tag of VMware or Hyper-V, Proxmox VE is a compelling choice.

Virtual Machines vs LXC Containers

Proxmox VE supports two distinct types of virtualisation, and understanding when to use each will save you time and resources.

A virtual machine (VM) runs a complete operating system with its own kernel, entirely isolated from the host. This means you can run Windows, BSD, or any Linux distribution as a guest without it having any awareness of the underlying Proxmox host. VMs are the right choice when you need full OS isolation, when you are running a Windows workload, or when the guest software requires kernel-level access that would not be safe to expose in a container.

LXC containers, by contrast, share the host kernel. They are far more lightweight — they start in seconds, consume significantly less RAM, and have almost no overhead compared to running a process natively. The trade-off is that containers must run a Linux OS compatible with the host kernel, and certain privileged operations are restricted by default. For the majority of Linux-based self-hosted services, LXC containers are the better option: they use fewer resources and perform better under load.

Getting Started with Proxmox

What Can You Run on Proxmox?

Proxmox VE is well-suited to a wide range of self-hosted workloads. The following are some of the most common services people run on it:

Home Assistant — home automation hub, typically run as a VM using the official Home Assistant OS image
Plex or Jellyfin — media server for streaming your personal film and music library
Pi-hole — network-wide ad and tracker blocking via DNS
TrueNAS or TrueNAS Scale — NAS operating system for ZFS-backed storage
Nextcloud — self-hosted file sync, calendar, and contacts platform
Windows VMs — running Windows 10 or 11 as a guest for desktop applications or gaming
pfSense or OPNsense — open-source firewall and router software
Immich — self-hosted photo and video backup, similar to Google Photos
Vaultwarden — lightweight, self-hosted Bitwarden-compatible password manager
n8n — self-hosted workflow automation tool

Proxmox Minimum Hardware Requirements

Proxmox VE will run on any reasonably modern 64-bit server or desktop machine. The practical minimums and recommended specifications are as follows:

CPU: 64-bit processor with Intel VT-x or AMD-V virtualisation extensions enabled in BIOS — required for running VMs
RAM: 2 GB minimum to boot Proxmox itself; 8 GB or more recommended if you plan to run several VMs or containers simultaneously
Storage: 32 GB minimum for the Proxmox OS installation; an SSD is strongly recommended for the boot drive and VM storage due to the significant impact on IOPS performance
Network: 1 GbE network adapter minimum; a second NIC is useful if you want to separate management traffic from VM traffic

For UK home lab builders, used enterprise hardware offers excellent value. Machines such as the Dell PowerEdge R720, R730, or HP ProLiant DL380 Gen9 can be found on eBay for well under £200, and they typically include ECC RAM, redundant power supplies, and IPMI remote management — features that are difficult to replicate with consumer hardware at the same price.

Running Immich on Proxmox? See our guide: How to Run Immich on Proxmox: LXC Container Setup

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