Docker vs Proxmox: Which Should Your Homelab Use?
Docker on bare metal vs Proxmox: a direct comparison of both approaches, when to pick each, and when running both on the same machine is the right call.
The simplest homelab setup is Docker on Ubuntu, directly on bare metal. Install Ubuntu, install Docker, run containers. Done. No hypervisor, no VM overhead, no extra layer to manage.
That’s a fine setup. It’s where most people start. I ran Docker on plain hosts off and on for years before moving to Proxmox. Here’s the case for the switch, and whether you should make it.
The case for plain Docker on bare metal
Simpler is better until it isn’t. Plain Docker on bare metal has real advantages:
Less overhead. No hypervisor, no VM. Containers get direct access to hardware. This matters most if you’re running resource-constrained hardware.
Faster to set up. Ubuntu install plus Docker is an hour. Proxmox, VM creation, Ubuntu VM install, then Docker is three to four hours.
Less to learn. Proxmox has its own interface, its own networking concepts, and its own failure modes. If you’re already comfortable with Docker and Linux, adding Proxmox means learning another tool.
It’s what most guides assume. The majority of Docker guides assume a direct Linux install. Container networking, storage paths, and user permissions all behave predictably.
Why I added Proxmox anyway
Snapshots. Before a significant change to your Docker host (new service, configuration update, OS upgrade) you can take a Proxmox snapshot, and I have rolled back from one. If something breaks, you roll back to the last known good state. On bare metal, a failed update means debugging or reinstalling. Snapshots need storage that supports them (LVM-thin, ZFS, btrfs); on plain LVM, vzdump is the safety net.
Multiple isolated workloads. I run a Docker host for container services, plus separate LXC containers for things like DNS (Technitium). Keeping those separate means my DNS server doesn’t share fate with my Docker host. If I break Docker, DNS keeps working.
Resource allocation. Proxmox lets you limit CPU and RAM per VM or container. As an example, a Docker VM might get 12GB of RAM and a DNS container 512MB, with the rest available for something temporary. This is more flexible than cgroups on bare metal.
Easier to run experiments. Want to try a different container manager? Spin up a new VM, don’t touch the working one. Want to test a config change that might be destructive? Snapshot, test, roll back if needed. Proxmox makes experimentation lower-stakes.
The honest cost of Proxmox
The overhead is real. As an example, on a 16GB host where Proxmox itself uses about 1GB, a 12GB Docker VM leaves about 3GB for LXC containers. With plain Docker, all 16GB would be available for containers.
For most services, the overhead only matters on small hosts. A 16GB machine is well above the threshold where hypervisor overhead matters.
CPU overhead from virtualization is measurable but small. For typical homelab workloads (web services, file sync, document management), it doesn’t matter.
The real cost is setup time and ongoing complexity. Proxmox has its own update process. VMs have their own disk allocation. Networking goes through a virtual bridge. If something goes wrong, there are more places to look.
My recommendation
Start with plain Docker on bare metal if:
- You’re new to self-hosting and want to minimize variables
- Your hardware has limited RAM (less than 8GB)
- You’re running only a handful of services
Move to Proxmox when:
- You want snapshot/rollback capability
- You’re running multiple different workloads you want isolated
- You’re comfortable enough with Linux that another layer doesn’t feel like friction
- You have 8GB+ of RAM and the overhead math works out
The migration from bare metal Docker to Proxmox is easier than it sounds. It’s mostly reinstalling. You can move your Docker volumes over and be back up in a few hours.
For getting started with Proxmox, the Proxmox on a Mini PC setup walkthrough covers hardware selection (N100 mini PCs specifically), BIOS prep, the full ISO install process, power management for always-on use, and first-VM layout. The VM vs LXC guide explains the container decisions once you’re running it. Once your VM is up, the Docker Compose basics guide covers organizing your container services, and Portainer gives you a visual dashboard for managing them.