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Software · head to head

Proxmox VE vs Neon

Proxmox VE logo

Proxmox VE

Software

Open-source hypervisor combining KVM and LXC virtualisation

From
€120/year
Rated
-
Full reviewWebsite
Neon logo

Neon

Software

Serverless Postgres for modern developers

From
Free
Rated
-
Full reviewWebsite

The short version

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

Where they differ

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

Attributes where Proxmox VE and Neon differ
AttributeProxmox VENeon
Starting price€120/yearFree
Pricing modelsubscriptionUnknown
Free tierNoYes
PlatformsLinux, Web, API, Self-hostedCloud
FoundedUnknown2021

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 Proxmox VE

Nothing recorded that Neon does not also cover.

Only in Neon

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

What people use each for

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

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

Neon

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

Where each one falls short

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

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

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

Pricing, plan by plan

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

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

Which should you pick?

Choose Proxmox VE if

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

Choose Neon if

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

Questions people ask

Is Proxmox VE or Neon better?
Neither clearly leads. Proxmox VE starts at €120/year and Neon at Free, and user ratings are close enough to be indistinguishable. Choose on capability and platform support.
Which is cheaper, Proxmox VE or Neon?
Neon has a free tier; the other does not. Paid plans start at €120/year for Proxmox VE and Free for Neon.
Does Proxmox VE or Neon run on more platforms?
Proxmox VE runs on Linux, Web, API, Self-hosted. Neon runs on Cloud.
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 Proxmox VE best used for?
Proxmox VE is most often used for open-source datacenter virtualisation for hosting providers and cloud platforms, cost-sensitive enterprise virtualisation replacing commercial hypervisors, high-availability clustering for disaster recovery and business continuity, container deployments using lxc as lighter-weight alternative to docker. Of those, open-source datacenter virtualisation for hosting providers and cloud platforms and cost-sensitive enterprise virtualisation replacing commercial hypervisors are not what Neon is typically brought in for.
What can Proxmox VE do that Neon cannot?
Neon covers Serverless PostgreSQL, Database Branching, Autoscaling, Bottomless Storage.

Answered from the vendors’ own pages

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: 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: 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: 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: 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 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
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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