Virtualisation is the engine of almost every homelab: it lets you run many systems on a single physical machine, try configurations without fear and roll back in seconds thanks to snapshots. The first important decision is which hypervisor to use, that is, the software that creates and manages virtual machines.
Type 1 and type 2
Hypervisors are traditionally split into two families.
- Type 1 (bare metal): installed directly on the hardware, they are the machine's main system. They are designed to run for long periods and host services. Examples: Proxmox VE, XCP-ng, VMware ESXi, Hyper-V Server.
- Type 2 (hosted): applications running on top of a desktop operating system. They are handy for trying something on your laptop. Examples: VirtualBox, VMware Workstation, GNOME Boxes.
The line is not always sharp: KVM, for instance, is a Linux kernel module that turns the system into a hypervisor, and it can be used both on a dedicated server and on a desktop. For a homelab that stays on, though, you almost always pick a type 1 platform.
The main options
Proxmox VE
It is based on Debian and uses KVM for virtual machines and LXC for system containers. It offers a complete web interface, native ZFS support, clustering, built-in backups and can be used for free; the "enterprise" repository with more thoroughly tested updates requires a subscription, but there is a public no-subscription repository. It is the most common choice in homelabs, and its documentation and community are extensive.
XCP-ng
It derives from XenServer and uses the Xen hypervisor. It is usually managed with Xen Orchestra, a separate web interface. It is solid and has an approach close to corporate environments, with good management of multi-host pools. Anyone who wants to study Xen or similar environments will find it very instructive.
Hyper-V
Microsoft's hypervisor, included in Windows Server and in the Pro and Enterprise editions of Windows. It makes sense mainly for people working in Microsoft environments who want to practise with those tools.
VMware ESXi
For years it was the corporate standard and very popular in homelabs thanks to a free version. Its licensing terms have changed several times in recent years, so check the current ones before choosing it. It remains worth knowing for anyone working where it is installed.
KVM with libvirt
You can also install an ordinary Linux distribution and manage virtual machines with libvirt, virsh and tools such as virt-manager or Cockpit. You get maximum control and learn a lot about the internals, at the price of building yourself what integrated platforms provide ready-made.
Selection criteria
| Criterion | What to ask |
|---|---|
| Learning goal | Do I want to learn the technology used in my current or future job? |
| Hardware | Does the platform recognise my network card and disk controller? |
| Storage | Do I need built-in ZFS, shared storage or simple local disks? |
| Containers | Do I want lightweight system containers alongside virtual machines? |
| Cluster | Do I plan several nodes and virtual machine migration? |
| Licensing | Are the free-use terms clear and stable? |
Hardware compatibility
This is the point that most often surprises people. Some hypervisors support a narrow list of network cards and controllers: on a mini PC with a consumer network chip, the installer may not recognise it. Linux-based platforms such as Proxmox or plain KVM tend to support a wider range of hardware because they inherit the kernel's drivers.
Ease of recovery
A hypervisor is only as useful as it is easy to reinstall. With configurations saved and virtual machine backups on external storage, reinstalling the host should take an hour, not a weekend.
A suggested path
For beginners, a reasonable path is this:
- try the chosen hypervisor inside a virtual machine on your own computer, using nested virtualisation, to get familiar with the interface;
- install it on a dedicated machine, even a modest one;
- create a few virtual machines and containers, take snapshots, restore them, try a full backup and its restore;
- only afterwards add complexity such as clustering, shared storage or advanced virtual networking.
There is no absolute "best" hypervisor. There is the one that matches your goals and hardware, and that you know well enough to fix when something goes wrong.
In short
- For an always-on homelab choose a type 1 hypervisor; type 2 ones are for desktop experiments.
- Proxmox VE is the most common in homelabs: KVM, LXC, ZFS and clustering in one interface.
- XCP-ng, Hyper-V and ESXi make sense mainly if they mirror the work environment you want to study.
- Network card and controller compatibility must be checked before installing.
- Start simple and add clustering and shared storage only later.
