Room2.04Floor 2 Servers and cloud
Server virtualization on Hyper-V, Proxmox and VMware
One or two well-built hosts in place of a cupboard of ageing servers. Hyper-V, Proxmox or VMware, sized for your workloads, licensed correctly and backed up properly.
- No cupboard of ageing servers
- One or two well-built hosts
- Hyper-V, Proxmox or VMware
- Licensed and backed up properly
Fewer servers, each doing more, and far easier to recover
Server virtualization runs several servers as virtual machines on one physical host. In a typical GTA office that means the domain controller, the file server, the accounting or ERP database, a line-of-business application and a remote desktop server all sit on one or two well-built hosts instead of four or five ageing boxes in a cupboard.
For a small or mid-size office, the real gain is recovery, not consolidation. A virtual machine is a set of files. It can be backed up whole, copied to a second host every few minutes, started on other hardware when a server fails, or brought up in a Canadian cloud region to prove the disaster recovery plan actually works.
We design, build and support virtual server environments for offices of 5 to 250 people: choosing the hypervisor, sizing the hardware, getting the licensing right, moving existing servers across, and keeping the whole thing patched and backed up. Day-to-day care of the servers themselves is covered on our server support page.
Hyper-V, Proxmox or VMware: choosing a hypervisor in 2026
The hypervisor decision has changed more in the last three years than in the decade before, mostly because of VMware’s new licensing. These are the three platforms we build on, and where each one fits.
| Platform | Licensing | Best fit | Watch out for |
|---|---|---|---|
| Microsoft Hyper-V on Windows Server 2025 | Part of Windows Server. Datacenter covers unlimited Windows Server VMs on the host, Standard covers two per licence set. | Offices running mostly Windows servers that license Windows Server anyway | Every physical core is licensed, with a 16-core minimum per server, before any VM is counted |
| Proxmox VE 9 | Open source and free to use, with an optional subscription for the stable update channel and vendor support | Offices leaving VMware, mixed Windows and Linux servers, and two- or three-host clusters on a budget | Needs Linux skills to run well, and production hosts should be on the paid subscription |
| VMware vSphere (Broadcom) | Subscription only, priced per core, with a 16-core minimum per processor and a 72-core minimum per order since April 2025 | Larger estates already built around vSphere tools and skills | Small hosts pay for cores they do not have, and late renewals cost 20% more |
For most offices of 5 to 250 people, the answer is Hyper-V when Windows Server Datacenter is already in the budget, and Proxmox when it is not or when VMware is the starting point. We still support VMware where staying is the cheaper choice, and we will show you the numbers either way.
Leaving VMware after the Broadcom changes
Broadcom ended perpetual VMware licences and the Essentials kits that small businesses relied on, and moved everything to per-core subscriptions. Since April 2025 the smallest order is 72 cores, so an office with one 16-core host pays for 72. Renewals that arrive late carry a 20% surcharge. Many small VMware customers have been quoted several times what they used to pay, for exactly the same servers.
Moving off VMware is a project, but not a leap in the dark. Proxmox VE has a built-in import tool that reads virtual machines straight from an ESXi host, and Hyper-V takes converted disks.
We move one virtual machine at a time: the new host is built beside the old one, each VM is imported and tested with the people who use it, the switch happens in an evening, and the VMware copy stays powered off but intact until you sign off.
What we check before a VMware move
- The VMware renewal date, so the move finishes before it and the surcharge never applies
- VMware features actually in use, such as vSAN storage, NSX networking or automatic load balancing, and what replaces each one
- Backup software support for the new platform, since Veeam covers Hyper-V and Proxmox VE as well as VMware
- Applications licensed against a VM’s hardware ID or network address, which may need reactivating after the move
- VMware Tools removed and the right drivers installed in each VM, so disks and network cards perform properly on the new host
Windows Server licensing for virtual machines
The hypervisor may be free. The Windows Server running inside the virtual machines is not, and getting it wrong is a common and expensive mistake that only shows up in an audit or a renewal. These are the rules that matter for a typical office.
- Every physical core in the host is licensed, with a minimum of 8 per processor and 16 per server, whichever hypervisor runs underneath
- Standard edition covers two Windows Server VMs, and every two more VMs means licensing all the host’s cores again
- Datacenter edition covers unlimited Windows Server VMs on that host, and somewhere around a dozen VMs per host it usually costs less than stacking Standard
- In a cluster where VMs can move between hosts, each host is licensed for the VMs that may end up running on it
- Windows Server CALs for each user or device still apply, plus Remote Desktop CALs if staff use a remote desktop server
- Windows Server 2025 can also be billed pay-as-you-go through Azure Arc, which suits short-term extra servers but does not include unlimited virtualization
We count cores, virtual machines and users before quoting, and show Standard and Datacenter totals side by side. Licences can be bought through us along with your other Microsoft subscriptions.
Sizing the host: cores, memory and storage
Most virtual servers we inherit are short of memory or storage speed, not processing power. A host sized properly on day one runs quietly for five years. One sized from a guess slows down every time the accounting database runs a report.
- Memory. Add up what each VM needs, add the host’s own overhead and about 30% for growth. Memory is the first thing a busy host runs out of.
- Processor. Fewer, faster cores often beat many slow ones for databases and remote desktop, and fewer cores also mean fewer Windows Server licences.
- Storage. SSD or NVMe drives in a redundant RAID set for databases and remote desktop, with capacity for three to five years of growth plus room for snapshots.
- Resilience. Two power supplies, a RAID controller with protected cache, and a remote management card so a hung host can be restarted without a site visit.
- Network. Separate links for VM traffic, host management and backups, and 10 Gb between hosts in a cluster.
- Warranty. Next-business-day or four-hour parts cover for the full planned life of the host.
We quote servers from the major makers with every component listed, and size them from your actual workloads rather than a standard bundle.
One host, two hosts or three: how much downtime can you accept?
The number of hosts decides what happens on the day a server fails. More hosts cost more, so the right design depends on what an hour without your servers costs the business.
| Design | When a host fails | Suits |
|---|---|---|
| One host with good backups | VMs are restored to repaired or replacement hardware, which takes hours or longer depending on parts | Offices that can work from Microsoft 365 for a day |
| Two hosts with replication | Replicated copies are started on the second host within minutes, losing only the changes since the last replication | Most offices of 20 to 150 people |
| Three-host cluster | VMs restart automatically on the surviving hosts, usually with little or no data lost | Offices where an hour of downtime costs more than an extra server |
Hyper-V Replica and Proxmox storage replication make a two-host design possible without an expensive shared storage array. A two-host cluster also needs a small third vote, a witness, so the hosts never both decide they are in charge after a network fault. We include it in every two-host design.
Backup and disaster recovery for virtual servers
Virtual machines are easy to back up whole, which is the best reason to virtualize a small office. A snapshot or a copy on the same host is not a backup, though. These are the rules we build every environment to.
- Image-level backups of every VM at least nightly, and more often for databases
- At least one copy that cannot be changed or deleted for a set period, on a hardened repository or immutable cloud storage, so ransomware that reaches the network cannot reach the backups
- An off-site copy held in a Canadian data centre
- Test restores on a schedule, with a whole VM booted in isolation, not just a single file recovered
- Hypervisor management kept off the office network with its own accounts and multi-factor sign-in, because an attacker who reaches the hypervisor can encrypt every VM at once
We use Veeam or Acronis depending on the environment. Our Acronis cloud backup and backup and disaster recovery pages cover the backup side in more detail.
When a server belongs in the cloud instead
Not everything needs a server in the office. Email and shared files belong in Microsoft 365. A line-of-business application used from several sites may run better on Azure in Canada Central in Toronto or Canada East in Quebec.
What tends to stay on site is work that needs fast access to large local files, software tied to equipment in the building, and offices with slow or unreliable internet.
Many offices end up with a mix: one or two hosts on site, with backups and disaster recovery copies in a Canadian cloud region. Our Azure projects section explains how we size and cost the cloud side.
Still running Windows Server 2016? It reaches end of support on January 12, 2027. Moving those servers onto new virtual machines running Windows Server 2025 is the natural time to virtualize, and our server migration page covers the move itself.
Virtualization projects we quote
Each project starts with a count of your servers, workloads, users and licences, and is quoted at a fixed price with the hardware and licences listed separately.
- Physical servers moved onto a new Hyper-V or Proxmox hostFixed quote
- VMware to Proxmox or Hyper-V migration before renewalFixed quote
- Two-host design with replication for faster recoveryFixed quote
- Three-host cluster with automatic failoverFixed quote
- Windows Server 2016 VMs rebuilt on Windows Server 2025Fixed quote
- Backup and disaster recovery for virtual serversFixed quote
- Health check of an existing VMware or Hyper-V setupFixed quote
Questions people ask
What is server virtualization?
It runs several servers as virtual machines on one physical host. Each virtual machine behaves like its own server, but they share the host's processors, memory and storage, which means fewer machines to buy, power and maintain, and servers that are far easier to back up and recover.
Is Hyper-V free?
The Hyper-V role comes with Windows Server, but the host's cores and the Windows Server virtual machines on it still need licences. The free standalone Hyper-V Server 2019 was the last of its kind. Proxmox VE is the free option today, with a paid subscription recommended for production.
Should we stay on VMware?
Sometimes. Larger estates built around vSphere tools may find staying cheaper than moving. For most small offices, Broadcom's per-core subscriptions and 72-core minimum make Hyper-V or Proxmox the better value. We price both before you decide, ideally well ahead of your renewal date.
Is Proxmox safe for business use?
Yes, when it is built and run properly. It is mature open-source software with live migration, high availability and built-in backup, and Veeam supports it. We put production hosts on the paid Proxmox subscription for the stable update channel and vendor support.
How many servers can one host replace?
Most offices of 5 to 50 people run three to six virtual machines, and one well-sized host handles that comfortably. The limit is usually memory and storage speed rather than the processor, which is why we size from your actual workloads.
Do we need two hosts?
Not always. One host with good backups suits an office that can work from Microsoft 365 for a day while hardware is replaced. If an outage of more than an hour would hurt, a second host with replication brings servers back within minutes.
How long does a virtualization project take?
Most of the work happens before anything changes: sizing, ordering hardware and building the new host. Existing servers are then moved one at a time, usually in the evening, so staff rarely notice. The schedule comes with the fixed quote.
Can our virtual servers be hosted in Canada?
Yes. On-site hosts stay in your office, and cloud backups, disaster recovery copies or Azure virtual machines can be kept in Canadian regions, Canada Central in Toronto and Canada East in Quebec.
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Something broken, or something to plan?
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