Choose Your Hypervisor

BUILDING A HOME LAB OR SMALL OFFICE SOLUTION

3/19/20254 min read

Microsoft's Hyper-V and VMware's ESXi stand as leading virtualization platforms in the market today, serving environments ranging from small home labs to enterprise datacenters. While they share the fundamental purpose of hardware virtualization, they differ significantly in architecture, licensing, management approaches, and feature sets.

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Hyper-V vs. ESXi for Home Labs & Small Offices

Both hypervisors enable organizations to consolidate physical servers, improve resource utilization, and create flexible computing environments. They each support virtual networking, storage integration, VM migration, and the ability to run multiple operating systems concurrently on a single physical host. However, their implementation philosophies and ecosystems reflect their different origins and design priorities. Here is a breakdown of each solution.

Licensing & Cost:

  • Hyper-V: Included with Windows Server and some Windows desktop editions. Windows Hyper-V Server (standalone) was free but discontinued after 2019.

  • ESXi: *Free version available with limitations (no vCenter, limited CPUs/vRAM). Paid versions require licensing costs.

Management:

  • Hyper-V: Managed through Windows tools (Hyper-V Manager, PowerShell, Windows Admin Center)

  • ESXi: Managed through vSphere Client, with advanced features via vCenter (additional cost)

Host OS Requirements:

  • Hyper-V: Runs as a Windows Server role or on Windows 10/11 Pro/Enterprise

  • ESXi: Bare-metal hypervisor with no underlying OS requirement

Pros & Cons

Hyper-V Pros

  • Lower entry cost if you already use Windows ecosystem

  • Native Windows integration and authentication

  • PowerShell automation capabilities

  • Easier learning curve for Windows administrators

  • Storage Spaces Direct for simpler storage management

Hyper-V Cons

  • More resource overhead due to Windows OS requirements

  • Less optimized for pure virtualization environments

  • Fewer advanced features in free version

  • Less mature Linux guest support (though significantly improved)

ESXi Pros

  • Better resource utilization and performance

  • More mature virtualization platform

  • Robust VM migration capabilities

  • Better snapshot management

  • Superior high availability features

  • Stronger isolation between VMs

ESXi Cons

  • Steeper learning curve

  • Higher cost for advanced features

  • Less integrated with Microsoft services

  • Free version has significant limitations

Similarities

  • Both support VM migration (live and offline)

  • Both support virtual networking, including VLANs

  • Both offer VM templates and cloning

  • Both support common virtualization hardware requirements

  • Both offer reasonable performance for most workloads

  • Both support various storage options (iSCSI, NFS, local storage)

  • Both have advanced security features

Recommendation

  • Choose Hyper-V if: You're primarily a Windows shop, want tighter Windows integration, work extensively with Active Directory, or have limited budget

  • Choose ESXi if: You need the best virtualization performance, have mixed OS environments, want room to grow into enterprise features, or prioritize advanced VM management capabilities

For a home lab or small office, the free version of ESXi is often sufficient unless you need features like vMotion or HA, while Hyper-V may be more practical if you're already invested in the Windows ecosystem.

We will start with VMware's ESXi as the hypervisor for our purposes. The FREE version of ESXi is no longer available on Broadcom's website, please email me at admin@readywhenyouare.net and I will promptly provide a safe link for you to download the FREE ESXi 7 ISO file.

VMware vSphere 7 Installation & Configuration Guide for Home Labs

Single ESXi Host with vCenter Server Appliance and Dedicated Networks

This guide outlines the steps to install, configure, and manage a small vSphere 7 environment with one ESXi host, one vCenter Server Appliance (VCSA), and dedicated networks for vMotion, storage, and VM traffic.

Hardware Requirements

  • ESXi Host:

    • CPUs: 2 CPUs minimum, 4+ cores per CPU recommended

    • Memory: 16GB minimum, 32GB+ recommended

    • Storage: 8GB minimum for ESXi, 100GB+ for VMs

    • Network: 4+ NICs (for separate networks)

  • Network Equipment: Switch with VLAN capability (recommended)

  • Storage: Local storage or shared storage (NFS/iSCSI)

Software Requirements

  • ESXi 7.0 installation media

  • vCenter Server Appliance 7.0 installer

  • PC to administer hypervisor from

1. ESXi Host Installation

1.1 Create Installation Media

  1. Download ESXi 7.0 ISO from Broadcom Customer Connect (email me if you cannot find it online!)

  2. Create bootable USB drive using Rufus

1.2 Install ESXi

  1. Boot server from installation media

  2. When the ESXi installer loads, press Enter to continue

  3. Accept the EULA by pressing F11

  4. Select the installation disk and press Enter

  5. Select keyboard layout and set root password

  6. Press F11 to begin installation

  7. After installation, remove installation media and reboot

1.3 Initial ESXi Configuration

  1. Access ESXi Direct Console User Interface (DCUI)

  2. Configure management network:

    • Press F2 and log in

    • Select Configure Management Network

    • Set IP address, subnet mask, and gateway

    • Configure DNS servers

    • Set hostname

    • Press Esc to save and exit

2. Network Configuration

2.1 Physical Network Setup

Ensure your physical NICs are cabled as follows:

  • NIC1: Management traffic (ESXi and vCenter)

  • NIC2: Domain Services traffic

  • NIC3: vMotion traffic

  • NIC4: Storage traffic

2.2 Configure vSphere Standard Switches

  1. Connect to ESXi via web client (https://esxi01)

  2. Navigate to Networking > Virtual Switches

  3. Create standard switches for each traffic type: VM traffic, Storage, vMotion

2.2.1 Management Network (Default)

  • Use existing vSwitch0

  • Assign management vmkernel port (vmk0)

2.2.2 Domain Services Traffic Network

  1. Add new vSwitch (vSwitch1)

  2. Assign physical NIC2

  3. Add port group for VM traffic:

    • Name: Domain Services Network

    • VLAN ID: 200

2.2.3 vMotion Network

  1. Add new vSwitch (vSwitch2)

  2. Assign physical NIC3

  3. Add vmkernel port:

    • Name: vMotion

    • VLAN ID: As appropriate (e.g., 20)

    • Select vMotion service

    • Configure IP address and subnet mask

2.2.4 Storage Network

  1. Add new vSwitch (vSwitch3)

  2. Assign physical NIC4

  3. Add vmkernel port:

    • Name: Storage

    • VLAN ID: 300

    • Select iSCSI

    • Configure IP address and subnet mask

3. vCenter Server Appliance Deployment

3.1 Prepare for VCSA Installation

  1. Download VCSA installer from VMware Customer Connect

  2. Install the Client Integration Plugin if needed

  3. Ensure DNS resolution is configured for ESXi host

3.2 Deploy VCSA

  1. Launch the VCSA installer

  2. Select Install > Stage 1: Deploy vCenter Server Appliance

  3. Accept the EULA and click Next

  4. Connect to the ESXi host:

    • 10.10.1.2

    • Username: root

    • Password: (ESXi root password)

  5. Set up VCSA VM:

    • VM name: vCenter

    • Set root password

  6. Select deployment size:

    • For small environments: Tiny

  7. Select storage: Choose appropriate datastore

  8. Configure network settings:

    • Select the Management Network

    • Configure IP address, subnet mask, and gateway

    • Set DNS servers and hostname

  9. Review settings and click Finish

  10. Wait for Stage 1 deployment to complete

3.3 Configure VCSA

  1. After Stage 1 completes, click Continue for Stage 2

  2. Configure NTP servers

  3. Configure SSO domain:

    • SSO domain name: vsphere.local (default)

    • SSO password

    • skynet.gov

  4. Do not Join VMware Customer Experience Program

  5. Review settings and click Finish

  6. Wait for configuration to complete

3.4 Access vCenter Server

  1. Open a browser and navigate to https://10.10.1.3

  2. Log in with:

    • Username: administrator@vsphere.local

    • Password: (SSO password set during installation)

4. Add ESXi Host to vCenter

4.1 Create Datacenter

  1. Right-click on vCenter server in the inventory

  2. Select New Datacenter

  3. Name the datacenter and click OK

4.2 Create Cluster

  1. Right-click on the datacenter

  2. Select New Cluster

  3. Enter cluster name

  4. Configure cluster settings as desired

  5. Click OK

4.3 Add ESXi Host to Cluster

  1. Right-click on the cluster

  2. Select Add Host

  3. Enter 10.10.1.2

  4. Enter root credentials

  5. Review host details and click Next

  6. Assign license if available

  7. Enable lockdown mode if desired

  8. Review VM location and click Next

  9. Review summary and click Finish

5. Storage Configuration

5.1 Local Storage

  1. Navigate to Storage

  2. Existing local datastores will be visible

  3. To create a new datastore:

    • Right-click on the host

    • Select Storage > New Datastore

    • Follow the wizard to create VMFS datastore

8. Additional Considerations

8.1 Licensing

  1. 60-day Evaluation licenses to ESXi host and vCenter, afterwards you need to apply a term or subscription license

8.2 High Availability Considerations

  1. For future expansion, consider:

    • Additional ESXi hosts

    • Shared storage

    • vSphere HA configuration

This guide provides the foundation for a small vSphere 7 environment. As your needs grow, you can expand by adding more ESXi hosts, implementing clusters with HA/DRS, and integrating with other VMware products.

NEXT: Network Your Home Lab

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