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Software · head to head

Neon vs Proxmox VE

Neon logo

Neon

Software

Serverless Postgres for modern developers

From
Free
Rated
-
Full reviewWebsite
Proxmox VE logo

Proxmox VE

Software

Open-source hypervisor combining KVM and LXC virtualisation

From
€120/year
Rated
-
Full reviewWebsite

The short version

  • Only Neon has a free tier, so it costs nothing to try first.
  • Each has a real cost: Neon compute pricing at $0.106-$0.222/CU-hour means costs scale directly with workload, unlike fixed-price alternatives; Proxmox VE per-socket licensing model: cost scales with CPU socket count, not vCore count, resulting in high costs for multi-socket servers

Where they differ

Only the attributes on which Neon and Proxmox VE actually diverge.

Attributes where Neon and Proxmox VE differ
AttributeNeonProxmox VE
Starting priceFree€120/year
Pricing modelUnknownsubscription
Free tierYesNo
PlatformsCloudLinux, Web, API, Self-hosted
Founded2021Unknown

Identical on both: user rating (Not yet rated), category (Unknown).

What each one covers

Drawn from each product's published feature list. An absence here means we hold no record of it - not that the product lacks it.

Only in Neon

  • Serverless PostgreSQL
  • Database Branching
  • Autoscaling
  • Bottomless Storage
  • Point-in-time Recovery
  • Connection Pooling
  • Read Replicas
  • Instant Cloning

Only in Proxmox VE

Nothing recorded that Neon does not also cover.

What people use each for

The jobs each tool is most often brought in to do.

Neon

  • Serverless applicationsnot Proxmox VE
  • Development databasesnot Proxmox VE
  • Preview environmentsnot Proxmox VE
  • Testingnot Proxmox VE

Proxmox VE

  • Open-source datacenter virtualisation for hosting providers and cloud platformsnot Neon
  • Cost-sensitive enterprise virtualisation replacing commercial hypervisorsnot Neon
  • High-availability clustering for disaster recovery and business continuitynot Neon
  • Container deployments using LXC as lighter-weight alternative to Dockernot Neon
  • Hybrid VM and container workloads in a single management interfacenot Neon
  • Backup and archival infrastructure alongside primary virtualisationnot Neon

Where each one falls short

Documented limitations, not opinions. Every one is a constraint you would hit in normal use.

Neon

  • Compute pricing at $0.106-$0.222/CU-hour means costs scale directly with workload, unlike fixed-price alternatives
  • Separation of compute and storage may add complexity to cost prediction compared to all-in-one plans

Proxmox VE

  • Per-socket licensing model: cost scales with CPU socket count, not vCore count, resulting in high costs for multi-socket servers
  • Linux-based host only; Windows hypervisors not supported, limiting adoption in Windows-focused organisations
  • Clustering and high-availability setup requires operational expertise and careful network configuration
  • Commercial support tiers limit advanced features (just-in-time access, network flow logs) to paid subscriptions
  • Smaller ecosystem of third-party plugins and integrations compared to VMware vSphere

Pricing, plan by plan

Neon

Free
  • FreeFree
    • 100 CU-hours/month
    • 0.5 GB storage
    • 1 project
  • Launch$15/month
    • Pay-as-you-go compute
    • $0.35/GB storage
    • Multiple projects
  • Scale$31/month
    • Higher compute rates
    • 99.95% SLA
    • HIPAA compliance

Proxmox VE

€120/year
  • Community$120/year
    • Enterprise Repository access
    • Community forum support only
    • Per-socket subscription model
  • Basic$370/year
    • 3 support tickets per year
    • 1 business day response time
    • Stable updates and Enterprise Repository
  • Standard$550/year
    • 10 support tickets per year
    • 4-hour response time for critical issues
    • Remote SSH support and offline updates
  • Premium$1100/year
    • Unlimited support tickets
    • 2-hour response time for critical issues
    • Remote SSH support and offline updates

Which should you pick?

Choose Neon if

  • You need serverless postgresql.
  • You want to start without paying.
  • You work on Cloud.
  • You also want database branching.
Neon review

Choose Proxmox VE if

  • You work on Linux, Web, API, Self-hosted.
Proxmox VE review

Questions people ask

Is Neon or Proxmox VE better?
Neither clearly leads. Neon starts at Free and Proxmox VE at €120/year, and user ratings are close enough to be indistinguishable. Choose on capability and platform support.
Which is cheaper, Neon or Proxmox VE?
Neon has a free tier; the other does not. Paid plans start at Free for Neon and €120/year for Proxmox VE.
Does Neon or Proxmox VE run on more platforms?
Neon runs on Cloud. Proxmox VE runs on Linux, Web, API, Self-hosted.
Can I use Neon for free?
Yes. Neon has a free tier, so you can try it without paying. Proxmox VE starts at €120/year.
What is Neon best used for?
Neon is most often used for serverless applications, development databases, preview environments, testing. Of those, serverless applications and development databases are not what Proxmox VE is typically brought in for.
What can Neon do that Proxmox VE cannot?
Neon covers Serverless PostgreSQL, Database Branching, Autoscaling, Bottomless Storage.

Answered from the vendors’ own pages

Neon: What is Neon and what makes it different?

Neon is a serverless PostgreSQL database that separates compute and storage, enabling automatic scaling and instant database branching. After acquisition by Databricks in May 2025, pricing has been significantly reduced.

Source
Proxmox VE: What is the licensing model for Proxmox VE?

Proxmox VE is open-source and free to deploy. Optional subscription tiers provide technical support, priority response times, and access to the Enterprise Repository for stable update channels. All tiers include identical virtualisation features.

Source
Neon: Does Neon offer a free tier?

Yes, Neon's free tier includes 100 compute units per month and 0.5 GB of storage. This is suitable for development and small projects.

Source
Proxmox VE: Can I run Proxmox VE without a support subscription?

Yes. Community Edition (€120/year per socket) provides Enterprise Repository access with community-based support through forums. The core Proxmox VE platform is fully functional without any subscription.

Source
Neon: What are the paid plans and pricing for Neon?

Neon offers consumption-based pricing on Launch ($0.106/CU-hour, approximately $15/month) and Scale ($0.222/CU-hour, approximately $31/month) plans with separate storage billing at $0.35/GB-month. No monthly minimum required.

Source
Proxmox VE: What hypervisors does Proxmox VE support?

Proxmox VE includes both KVM for full virtualisation and LXC for Linux containers. It does not support Xen or Hyper-V. Workloads on those platforms must be migrated or reimplemented.

Source
Neon: What features does Neon provide?

Neon includes git-like branching for database copies, point-in-time recovery, data anonymization for testing, managed authentication, serverless functions, and object storage that branches with projects.

Source
Neon: What compliance and reliability guarantees does Neon provide?

Neon's Scale tier offers 99.95% uptime SLA, HIPAA compliance, SOC2 certification, and private networking via PrivateLink at no extra cost.

Source
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