What Is Proxmox

Imagine you've got a single server in your office. On it, you want to run a Windows machine for accounting, a Linux server for web hosting, and maybe a lightweight environment for testing new applications. Setting up separate physical machines for each workload would be expensive and inefficient — but with virtualization, you can carve that one server into many.

Proxmox Virtual Environment (Proxmox VE) is one of the open-source platforms that makes this possible. It provides tools to create and manage both virtual machines (VMs) and containers from a single interface. Beyond simply running workloads, it also includes features for clustering, backups, and resource management — the kinds of capabilities that help organizations move from one-off experiments to stable, scalable environments.

In the sections that follow, we'll take a closer look at Proxmox VE: what it is, how it works, the steps for getting started, and the advanced features that make it useful in both labs and production setups.

Proxmox VE?

Proxmox Virtual Environment, or Proxmox VE, is an open-source virtualization platform that combines two different technologies: Kernel-based Virtual Machine (KVM) for running full operating systems and Linux Containers (LXC) for lighter, more resource-efficient workloads. What sets it apart is the way these components are integrated into a single management layer. Instead of switching between different tools for virtual machines, containers, storage, and backups, administrators can manage everything through a unified web interface, a command-line toolset, or a REST API.

This design makes Proxmox suitable for a wide range of use cases. In a home lab, it might run on a single server, hosting a mix of experimental workloads. In a business setting, it can be scaled out into a cluster of nodes, providing high availability, centralized backups, and flexible networking. The system is often chosen by teams who want the flexibility of open-source software without locking themselves into a proprietary ecosystem.

While the platform is free to use, Proxmox also offers a subscription model. The core software is licensed under open source, but organizations that want enterprise-grade update repositories and professional support can opt for a paid subscription. This hybrid approach gives individuals and small teams a cost-free entry point, while also providing a pathway for companies that need commercial backing.

Among its most notable capabilities are clustering, backup integration, and broad storage support. Proxmox can work with local disks, ZFS pools, and shared storage systems like NFS, iSCSI, or Ceph. On the networking side, it supports standard Linux tools such as bridges, VLANs, and bonding, which allows administrators to design both simple and complex network topologies. Together, these features make Proxmox a versatile platform for environments where workloads range from small test deployments to production-grade services.

Core Capabilities at a Glance

Installation and Configuration

Proxmox VE is distributed as a Debian-based ISO image that includes everything needed to get started. Installation begins by writing the ISO to a USB stick (or mounting it in a virtual environment) and booting the target server. The guided installer then walks through disk selection, network setup, and account configuration. Many administrators choose ZFS as the file system during this step, since it provides built-in snapshotting and redundancy, though traditional ext4 setups are also supported.

The hardware requirements are modest, which makes it easy to try out in a lab. A 64-bit processor with virtualization extensions (Intel VT-x or AMD-V), 2 GB of RAM, and a small disk are enough for basic testing. For production, however, additional memory, enterprise-grade SSDs, and multiple network interfaces are recommended. In practice, many organizations allocate at least 8 GB of RAM and a multi-core CPU to ensure workloads run smoothly.

When the installation completes, the server reboots into Proxmox VE and exposes its management interface on port 8006. From a browser, the environment can be accessed at:

https://your-server-ip:8006

Logging in with the root account created during setup reveals the web dashboard. From here, the first tasks are usually to update the system packages, configure storage, and fine-tune networking. Updates can be applied directly through the interface or via the command line:

apt update && apt full-upgrade -y

Adding storage backends—whether a simple local disk, an NFS share, or a ZFS pool—can be done from the web interface. Networking is also managed here, with Linux bridges serving as virtual switches that connect virtual machines and containers to the physical network. Once these basics are in place, the environment is ready for deploying workloads, and additional nodes can be joined later to form a cluster if needed.

Managing Virtual Machines and LXC Containers

One of the defining characteristics of Proxmox VE is its ability to run both full virtual machines (VMs) and lightweight Linux Containers (LXCs) under the same management layer. This dual approach allows administrators to decide whether a workload should run as a complete operating system with its own kernel, or as a more resource-efficient container that shares the host's kernel.

Creating a VM begins in the web interface by uploading an installation ISO, such as a Linux distribution or Windows Server image. Once the ISO is available, a wizard guides you through setting CPU and memory limits, choosing a storage backend for the virtual disk, and attaching the ISO as a boot device. After the first boot, the guest operating system is installed just as it would be on physical hardware. From the command line, the same can be done with:

qm create 100 --name testvm --memory 2048 --net0 virtio,bridge=vmbr0
qm set 100 --cdrom local:iso/debian-12.iso --scsihw virtio-scsi-pci --scsi0 local-lvm:32
qm start 100

LXC containers follow a slightly different workflow. Instead of an ISO, Proxmox uses downloadable templates—pre-built root filesystems for distributions like Debian, Ubuntu, or CentOS. Creating an LXC involves selecting a template, assigning CPU and memory resources, and setting a root password. Because LXCs share the host kernel, they boot almost instantly and consume fewer resources than VMs, making them especially useful for lightweight services, development environments, or lab work. A simple command-line example looks like this:

pct create 101 local:vztmpl/debian-12-standard_12.0-1_amd64.tar.zst --memory 1024 --net0 name=eth0,bridge=vmbr0,ip=dhcp
pct start 101

From the administrator's perspective, both VMs and LXCs appear side by side in the Proxmox interface. They can be started, stopped, and monitored in the same way, and both support features like snapshots for quick rollback. Workloads can also be migrated between nodes in a cluster or included in scheduled backups. By supporting full virtualization alongside LXC, Proxmox provides a flexible platform that can handle everything from traditional server workloads to lightweight, containerized services.

VM vs. LXC vs. Generic Linux Containers

Clustering and High Availability

A single Proxmox VE server is powerful on its own, but the platform is designed to scale out into clusters when multiple nodes are available. Clustering allows administrators to pool servers into a single management domain, making it possible to migrate workloads between nodes, centralize backups, and improve fault tolerance.

Setting up a cluster is straightforward. One server initializes the cluster with:

pvecm create my-cluster

Other nodes then join using the cluster's IP and authentication details:

pvecm add 192.168.1.10

Once joined, all nodes are visible in the Proxmox interface, and workloads can be assigned to any of them. This arrangement is particularly useful when maintenance is required on a host—VMs and containers can be moved to another node with minimal downtime.

High availability (HA) builds on clustering by monitoring workloads and automatically restarting them on a different node if the original host fails. This feature depends on shared storage or replicated storage backends so that another node has access to the workload's data. Administrators define which VMs or LXCs are “HA managed,” and the cluster handles failover transparently.

In practice, HA in Proxmox is often paired with Ceph, a distributed storage system that integrates tightly with the platform. Ceph ensures that data remains accessible even if a node fails, while the HA stack takes care of moving the workload to a healthy host. The combination provides a level of resilience suitable for production environments where uptime is critical.

Clustering isn't limited to enterprises. Even in smaller labs, joining two or three nodes together gives administrators a chance to experiment with concepts like live migration and fault tolerance. The process mirrors larger deployments, making it an educational entry point into managing highly available systems.

Backups and Snapshots

Keeping workloads safe isn't just about uptime; it also requires reliable backup and recovery options. Proxmox VE includes built-in tools for both snapshots and scheduled backups, giving administrators flexibility in how they protect virtual machines (VMs) and LXC containers.

Snapshots are the quickest safeguard. They capture the state of a VM or container at a point in time, including disk and memory if desired. This is particularly useful before applying updates or making configuration changes. If something goes wrong, the system can be rolled back to its previous state in minutes. Snapshots, however, are stored on the same storage as the workload, which means they're not a substitute for true off-site backups.

Backups go further by creating a restorable archive of a VM or container. Proxmox supports several backup modes—such as “stop,” where the guest is powered down, and “snapshot,” which leverages storage technologies like QEMU's snapshotting for live backups without downtime. Backups are scheduled through the web interface and stored in designated locations, which can range from local disks to networked storage.

The command line provides a simple way to trigger backups manually. For example:

vzdump 100 --storage local --mode snapshot --compress zstd

This command backs up VM 100, using snapshot mode and compressing the result with Zstandard. The resulting archive can later be restored on the same host or another node in the cluster:

qmrestore /var/lib/vz/dump/vzdump-qemu-100.vma.zst 200

For larger environments, the Proxmox Backup Server (PBS) adds deduplication, encryption, and efficient incremental backups. While it is a separate component, it integrates seamlessly with Proxmox VE, giving administrators an enterprise-grade solution without needing third-party software.

Together, snapshots and backups ensure that workloads are not only resilient against failure, but also recoverable in the face of data corruption, hardware issues, or administrative mistakes.

Networking in Proxmox VE

Networking in Proxmox VE builds directly on the Linux networking stack, which means administrators work with familiar concepts such as bridges, VLANs, and bonded interfaces. Rather than inventing its own proprietary system, Proxmox provides a management layer that makes these standard Linux tools easier to configure and monitor.

The most common configuration is the Linux bridge, which functions like a virtual switch. By default, a bridge (usually vmbr0) is tied to a physical network interface, and virtual machines or LXC containers connect to that bridge through virtual NICs. This allows guests to communicate with the outside world just as if they were plugged into the same physical switch.

For environments that require segmentation, VLANs can be defined on a bridge to separate traffic. Proxmox exposes this option directly in the network configuration for each VM or container, letting administrators assign a VLAN tag without touching the guest operating system. This is especially useful in multi-tenant setups or when isolating workloads that share the same physical hardware.

When higher throughput or redundancy is needed, bonding (sometimes called link aggregation) can combine multiple physical NICs into a single logical interface. This provides failover if one link goes down, or higher bandwidth if the upstream switch supports aggregation. Proxmox handles the bonding configuration, but it's still Linux under the hood, meaning administrators retain full control if they prefer to tune parameters at the CLI level.

Configuration can be managed entirely from the web interface, where each network device is represented in a simple table, or through text files in /etc/network/interfaces. For example, creating a basic bridge by hand might look like this:

auto vmbr0
iface vmbr0 inet static
    address 192.168.1.100/24
    gateway 192.168.1.1
    bridge-ports eno1
    bridge-stp off
    bridge-fd 0

This configuration assigns a static IP to the host while attaching the physical NIC eno1 to the bridge vmbr0, making it possible for VMs and containers to connect through it.

By leveraging Linux's mature networking features, Proxmox provides a flexible system that adapts to small labs as easily as to complex data center topologies.