Through our relationship with Proxmox, OpenMetal now offers both OpenStack-powered hosted private clouds and bare metal infrastructure optimized for Proxmox VE deployment, giving you the flexibility to choose the solution that best fits your needs.
This guide will help you understand when OpenStack on OpenMetal versus Proxmox on OpenMetal makes the most sense for your organization, along with technical details and use cases for each approach.
Why Both Solutions on OpenMetal Infrastructure?
Whether you choose OpenStack or Proxmox, you benefit from OpenMetal’s foundation:
- High-Performance Bare Metal Servers: Dual Intel Xeon processors with up to 2TB DDR5 RAM
- NVMe Storage: Micron 7450/7500 MAX series drives delivering exceptional IOPS
- 20 Gbps Network Connectivity: Dual 10 Gbps NICs per server
- Multiple Data Centers: US East, US West, EU Amsterdam, APAC Singapore
- Predictable Pricing: Fixed monthly costs with no surprise charges
- Built-in DDoS Protection: Up to 10 Gbps per IP address
Solution Overview
OpenStack on OpenMetal: Hosted Private Cloud
OpenMetal’s Hosted Private Cloud is a fully managed OpenStack environment delivered as a turnkey solution. You get a production-ready private cloud with three hyperconverged dedicated servers running OpenStack and Ceph, deployable in under 60 seconds.
Key Characteristics:
- Fully automated OpenStack deployment
- Integrated Ceph distributed storage
- Self-service provisioning through Horizon dashboard
- Advanced networking with Neutron (VLANs, VXLANs, security groups)
- Multi-tenancy with project-based isolation
- API-driven infrastructure management
- Ideal for enterprise cloud architectures
Proxmox VE on OpenMetal: Bare Metal Virtualization
Proxmox Virtual Environment is an open source server virtualization platform combining KVM for full VMs and LXC for containers. When deployed on OpenMetal bare metal servers, you get a powerful, cost-effective virtualization platform without licensing fees.
Key Characteristics:
- Open source (GNU AGPLv3) with no fees unless you choose a paid subscription for extra services and support
- Web-based management interface
- Support for both VMs (KVM) and containers (LXC)
- Built-in high availability clustering
- Integrated backup and recovery tools
- Direct hardware control and customization
- Perfect for VMware migrations and straightforward virtualization
| OpenStack on OpenMetal | Proxmox on OpenMetal | |
|---|---|---|
| Deployment Model | Pre-configured OpenStack cloud on dedicated servers | User-installed Proxmox on bare metal servers |
| Time to Production | <60 seconds (automated) | 1-2 hours (manual installation) |
Minimum Configuration | 3-node hyperconverged cluster | Single server (3+ for HA) |
Starting Price | $583/month (XS cloud core) | $122/month (single XS server) |
Management Interface | OpenMetal Central, Horizon dashboard, CLI, API | Web GUI + CLI + API |
| Virtualization Technology | KVM (via Nova) | KVM + LXC containers |
| Storage Architecture | Ceph distributed storage (included) | Local, ZFS, Ceph, NFS, iSCSI (user-configured) |
| Networking | Neutron SDN (advanced networking) | Linux bridge, OVS, VLANs (simpler networking) |
Multi-Tenancy | Built-in project-based isolation | Role-based access control |
API-Driven Automation | Comprehensive REST APIs for all services | REST API available |
Learning Curve
| Moderate to steep depending on Linux/OpenStack experience (enterprise cloud platform) | Moderate (traditional hypervisor) |
Licensing Costs | Open source, no licensing fees | Open source, no licensing fees |
| Support Levels | OpenMetal hardware-only (included) or assisted management | OpenMetal hardware support + optional Proxmox subscriptions |
^All information may be subject to change because of pricing or service adjustments and/or unique customer resources. Information obtained December 2025.
When You May Choose Each Solution
OpenStack on OpenMetal is Great For:
Large-Scale, Multi-Tenant Deployments
- Hosting hundreds to thousands of instances
- Multiple departments or customers requiring isolated environments
- Service providers offering Infrastructure-as-a-Service
- Complex project-based resource allocation
Hybrid Cloud Architectures
- Integration with public cloud providers for cloud bursting
- Unified management across multiple data centers
- Workload portability between private and public clouds
- OpenStack-compatible application architectures
Regulatory Compliance and Security
- Industries requiring strict data isolation (finance, healthcare, government)
- Compliance frameworks demanding audit trails and access controls
- Workloads needing network segmentation and security groups
- Multi-region deployments with centralized management
Enterprise-Grade Cloud Features
- Self-service provisioning portals for internal teams
- Advanced networking topologies with software-defined networking
- Integration with cloud-native tools and orchestration (Kubernetes, Terraform, Ansible)
- Comprehensive API-driven automation for CI/CD pipelines
- Fine-grained identity and access management (Keystone)
Example Use Cases
- SaaS platforms serving multiple customers
- Financial services requiring transaction monitoring and AML compliance
- Healthcare organizations managing PHI with HIPAA requirements
- Telecommunications providers offering VNF orchestration
- Development teams needing isolated staging/production environments
Proxmox VE on OpenMetal is Great For:
Straightforward Virtualization
- Smaller VM deployments (10-300 VMs)
- Single-tenant environments without complex isolation requirements
- Teams familiar with traditional hypervisor management
- Preference for GUI-based administration over API-driven automation
VMware Alternative
- Escaping expensive VMware licensing (especially post-Broadcom acquisition)
- Organizations facing 150%-1000% VMware cost increases
- Need for live migration, HA clustering, and enterprise features without licensing fees
- Familiar virtualization workflows for VMware-trained staff
Simplified Management
- Small to medium IT teams without dedicated cloud specialists
- Preference for unified web interface over distributed services
- Quick deployment without extensive planning or architecture design
- Less complex networking and storage requirements
Cost-Sensitive Projects
- Maximum infrastructure cost savings (50%+ compared to public cloud)
- Elimination of per-VM or per-socket licensing fees
- Predictable monthly expenses without usage-based charges
- Development, testing, or lab environments
Example Use Cases
- SMB server consolidation and infrastructure modernization
- Development and testing environments for software teams
- Database consolidation (PostgreSQL, MySQL, MongoDB, Oracle)
- VDI (Virtual Desktop Infrastructure) deployments
- Hosting provider offering dedicated virtual server products
- MSPs managing customer environments with isolated access
Can You Use Both?
Absolutely! OpenMetal’s architecture supports hybrid deployments where Proxmox bare metal servers and OpenStack clouds share the same private networks:
- Shared VLANs: Connect Proxmox VMs with OpenStack instances on the same Layer 2 network
- Unified Management: Manage both through OpenMetal Central
- Flexible Workload Placement: Choose the right platform for each workload
- Consistent Networking: Single network topology spans both platforms
This approach lets you run production workloads on OpenStack while using Proxmox for specialized use cases like GPU-intensive applications requiring hardware passthrough or legacy systems better suited to traditional virtualization.
Getting Started
Deploy OpenStack on OpenMetal
- Sign up at OpenMetal Central
- Select your cloud core configuration based on workload requirements
- Launch your private cloud in under 60 seconds
- Access Horizon dashboard and begin provisioning instances
Deploy Proxmox VE on OpenMetal Bare Metal
- Provision bare metal servers via OpenMetal Central
- Follow our installation guide: Installing Proxmox VE on OpenMetal Bare Metal
- Configure networking using OpenMetal’s VLAN architecture
- Deploy your first VMs through the Proxmox web interface
Additional Resources
Learn More About Proxmox on OpenMetal:
- Why Run Proxmox VE on OpenMetal Bare Metal Infrastructure?
- Proxmox vs OpenStack: Comparing Open Source Cloud Software
- Installing Proxmox VE on Bare Metal – Technical Guide
OpenStack Resources:
Ready to Escape VMware or Reduce Your Public Cloud Spending?
Both OpenStack on OpenMetal and Proxmox on OpenMetal enable enterprise-grade infrastructure without the enterprise price tag. Our team can help you evaluate your requirements and recommend the right approach, whether that’s OpenStack, Proxmox, or a hybrid deployment.
Schedule a Consultation
Get a deeper assessment and discuss your unique requirements.