Since Broadcom folded vSphere into a handful of bundled subscriptions, renewal quotes have jumped sharply and perpetual licences have gone. For most UK organisations the question is no longer whether to move, but where to. This page weighs the four serious replacements against the criteria that actually decide the outcome — the size of your estate, your budget model, the Linux and Windows skills already on your team, and whether you run shared SAN storage or hyper-converged nodes.
| VMs | Hosts | VMware VCF / yr | Proxmox VE / yr | 3-yr saving |
|---|---|---|---|---|
| 50 | 3× | £50,304 | £2,820 | £142,452 |
| 100 | 4× | £67,072 | £3,760 | £189,936 |
| 250 | 8× | £134,144 | £7,520 | £379,872 |
| 500 | 15× | £251,520 | £14,100 | £712,260 |
All figures are indicative estimates for planning only and subject to change; licence prices vary by reseller and deal size, and any monthly finance figure is subject to credit approval — not a quotation.
The four alternatives that matter
Four platforms account for most UK VMware exits. Proxmox VE is the open-source KVM stack — no licence cost, mature clustering, and Veeam support, but it rewards Linux fluency. Nutanix AHV is the polished, vendor-backed HCI route for teams whose complaint is Broadcom rather than paid software. Azure Local (the rebranded Azure Stack HCI) suits Windows and Azure-centric shops with its per-core, Arc-managed model. XCP-ng, backed by Vates, is the Xen platform that feels closest to ESXi and vCenter for hands-on admins.
How to choose by estate, budget and skills
Estate size sets the shortlist. Small and mid-sized clusters with capable Linux staff often land on Proxmox or XCP-ng, where licensing falls away and the savings are largest. Larger estates that need a single throat to choke, formal SLAs and hands-off operations lean toward Nutanix or Azure Local. Budget model matters too: open-source shifts spend from licences to skills and support, while Nutanix and Azure Local keep a predictable subscription. Weigh in-house capability honestly — the cheapest platform to license can be the dearest to run without the right people.
Storage model, migration and how a reseller helps
Your storage design is often the deciding factor. If you run vSAN today, replacing it usually means moving to HCI — Nutanix or Azure Local — whereas keeping an existing SAN fits Proxmox or XCP-ng cleanly. Migration itself has matured: XCP-ng's Xen Orchestra offers agentless warm conversion of live VMware VMs, and Proxmox is now a first-class Veeam target. As a UK reseller, Servnet supplies the certified hardware, plans and runs the migration, and structures leasing or staged finance so the switch lands within a single budget cycle.
FAQs
Which VMware alternative is cheapest for a UK business?
Proxmox VE and XCP-ng carry no mandatory licence fee, so they show the largest headline savings — especially where your team already has Linux skills. The true cost, though, includes support contracts, migration effort and training. Nutanix and Azure Local cost more to license but bundle vendor support, which can be cheaper overall for lean teams. Our calculator models the trade-off for your estate.
Is Nutanix or Azure Local better if we want vendor support?
Both give you a single supported platform, but they suit different shops. Nutanix AHV is the most VMware-like experience, with mature HCI and strong support independent of your cloud choice. Azure Local fits organisations already invested in Windows Server, Active Directory and Azure, billing per physical core and managed through Azure Arc. If you are Azure-committed, Azure Local; if not, Nutanix is usually the smoother fit.
How hard is migrating off VMware, and can Servnet do it?
Migration is far easier than it was two years ago. XCP-ng's Xen Orchestra converts live VMware VMs with agentless warm migration, and Proxmox is a fully supported Veeam restore target, so you can move workloads in waves with minimal downtime. Servnet plans the sequence, supplies and stages the replacement hardware, runs the cutover, and can finance it so the project fits one budget cycle.