Why choosing to run VMware in 2026 is no longer a formality for SMEs

With ransomware attacks becoming more commonplace and the recent change in ownership of VMWare, 2026 is the time to consider both your choice of HyperVisor solution and how it is secured. As VMware renewals land under Broadcom’s new licensing model, organisations are discovering that just renewing their support is now an expensive exercise. This is also at a time when VMWare as a platform is a prime target for ransomware attacks, where virtualisation environments are encrypted and backups deleted.

This confluence of factors presents an opportunity to consider both moving your virtualisation environment and securing it as part of the same project.

On the VMWare licensing and support front, we are seeing:

• Renewal quotes 2×–10× higher than previous contracts
• Forced moves onto bundled subscription SKUs
• End-of-support deadlines that require full platform upgrades
• Licensing changes that remove previously affordable editions entirely

For many SMEs, the moment of renewal is the moment they realise:

“We’re being forced to rethink our virtualisation platform — whether we want to or not.”

Why now is the time to actively evaluate alternatives

For many, the renewal conversation has become a much wider reassessment — not because they actively want to leave VMware, but because they are now being forced by the platform to make a decision about their direction of travel. And, chances are, when it comes external input, you’re talking to someone primarily concerned with your renewal revenue, rather than your overall approach.

It’s becoming clear that for SMEs, remaining on VMware now involves significant upgrade work, disruption, and a significantly higher cost base, the long-held assumption that “renewing is the lowest-risk option” no longer holds true. Indeed, with the recent end of support for VMWare’s vSphere and ESXi 7 product line, the effort to migrate even small deployments up to the latest version is not trivial, coupled with issues managing the general operation of the environment with certificate expiries and the like.

This is where platforms like Proxmox enter the conversation. Not as a reactionary cost-cutting measure, but as a credible alternative that can deliver the capabilities most SMEs already rely on, without the same commercial overhead and complexity. The question is no longer “should we assess alternative virtualisation options to VMware?”, but “why wouldn’t we?”.

With this in mind, we would suggest that migrating most vSphere Essentials deployments of VMWare to Proxmox to be both preferable and straight forward. The key advantage being that Proxmox supports ingestion of VMWare workloads natively. With recent developments such as the release of Proxmox Data Center Manager providing more power and flexibility than ever before.

To understand why Proxmox is now being seriously considered as an alternative, it’s helpful to look at how the two platforms compare in practice.

VMware vs Proxmox: Commercial comparison

Illustrative example — actual costs vary, but this reflects what we are seeing in the market for SMEs with a virtualisation estate of 2–4 hosts.

VMware (post-Broadcom takeover, typical SME renewal)

• Mandatory subscription bundles
• Licensing tied to CPU cores
• Significant uplift compared to historic contracts
• Additional cost for backup, monitoring, and DR tooling
• Typical SME costs: £5k–£15k+ annually

Proxmox VE

• Subscription per host
• No forced feature bundles
• Integrated backup and replication
• Predictable renewal costs
• Typical SME costs: <£3k annually (with options less than £1k)

The headline difference is not marginal — it is material.

Capability comparison: The features that actually matter to SMEs

Other alternatives SMEs are evaluating

Alongside Proxmox, Hyper-V is often part of the same conversation for organisations reassessing their virtualisation platform.

For Microsoft-centric environments, Hyper-V can feel like a natural option. It is familiar, integrates tightly with the wider Microsoft stack, and fits comfortably within organisations that already operate heavily around Active Directory and Windows Server.

However, that tight integration is also what makes Hyper-V a different type of decision. Because the platform is so closely tied to Active Directory, identity becomes a central dependency for both day-to-day operations and recovery scenarios. If identity is compromised, particularly in ransomware incidents, the impact can be broader unless the environment has been deliberately designed with isolation and recovery in mind.

Hyper-V can be the right choice for some organisations — particularly where Microsoft alignment is strong and security architecture is well understood. But like Proxmox, it should be evaluated deliberately, with a clear view of operational risk, recovery strategy, and long-term platform direction, rather than being adopted by default.

The real choice SMEs now face

For most SMEs running VMware today, the decision is no longer binary.

The real choice is between three deliberate paths:

• Absorb the increased cost and upgrade VMware, accepting higher ongoing spend and upgrade complexity in return for continuity
• Move to an alternative platform such as Proxmox, trading familiarity for lower cost and greater flexibility
• Rethink virtualisation more broadly, potentially reducing on-premises reliance altogether

Standing still now carries both commercial and operational risk. The organisations that fare best will be those that recognise this as a strategic decision, rather than simply treating it as a procurement exercise.

Why this is a 2026 problem

Many SMEs renew VMware infrequently — often on multi-year cycles. As a result, the full impact of the changes introduced over the last 18–24 months are landing all at once, rather than gradually.

For organisations with renewals approaching in 2026, timelines compress quickly. Decisions that should be informed by cost modelling, technical assessment, and risk analysis are instead forced into short renewal windows, with limited leverage and fewer options.

Those who engage early retain control: time to assess alternatives, time to plan change properly, and time to align platform decisions with broader business objectives. Those who wait are left reacting under pressure.

Where Afinite can help

We are not tied to a single platform or solution. Our role is to provide clarity, remove uncertainty, and execute the chosen path properly — whether that means staying with VMware, moving to Proxmox, or taking a different route entirely.

Moving to a new platform can be an opportunity to enhance your security posture by separating your virtualisation and backup environments from your production network to minimise risk.

We support SMEs by:

• Assessing VMware renewal impact and upgrade requirements
• Providing clear VMware vs Proxmox comparisons
• Supplying Proxmox licensing
• Designing resilient, supportable architectures
• Delivering upgrades and migrations safely
• Ensuring backup, recovery, and security are aligned with the chosen platform

Book your free virtualisation consultation below: