Open-source alternative to VMware NSX

Teams whose NSX licence now sits inside VCF or VVF can replace its segments, distributed firewall and routing with Proxmox VE SDN or OpenStack Neutron with OVN. This page maps each capability, names the gaps and sets out what microsegmentation looks like afterwards.

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Open-source alternative to VMware NSX: the short answer for vSphere teams

If you run NSX today, you can no longer renew it as a standalone networking product. Broadcom states that NSX, along with vSphere Enterprise Plus, vSAN, Site Recovery Manager and Aria Suite, is now offered only as part of VMware Cloud Foundation (VCF) or VMware vSphere Foundation (VVF) and is no longer sold as a standalone product. For a KVM cluster, Proxmox VE SDN with its firewall covers most segment and perimeter needs. For multi-tenant, API-driven networking, OpenStack Neutron with OVN is the better fit, provided you can staff the operations work that OpenStack requires.

Be direct about the gap: distributed firewall parity is partial and must be tested. Proxmox VE's firewall works at the datacenter, node, and VM or container levels, and it does not offer NSX's policy model with groups, tags and centrally distributed rules across a multi-vendor estate. Before you commit, run a rule inventory from NSX, map each rule to a Proxmox VE firewall scope or an OVN security group, and confirm with the vendor how the platform handles your specific rule count and logging needs. Proxmox documents its SDN and firewall features in its Proxmox VE overview, which is the right starting point for that check.

On pricing, Proxmox VE subscriptions are charged per occupied physical CPU socket per year, and every subscription tier includes the same software features, so networking is not gated behind a higher tier. The tiers differ in support entitlements and enterprise repository access. Ask any networking vendor or integrator for a written quote that separates licensing, design, rule migration, testing and ongoing operations. The cost of an NSX replacement is driven more by the rule count, the number of segments and the staff time needed to validate policy than by a license line, so budget for the testing effort explicitly.

How NSX capabilities map to Proxmox VE SDN and OpenStack Neutron with OVN

This table maps the main NSX networking and security features to Proxmox VE SDN and to OpenStack Neutron with OVN, with coverage notes on where each option is partial. Read the coverage column first, because the gaps, especially in distributed firewall policy and grouping, decide how much of your current rule set can move unchanged.

NSX capabilityProxmox VE SDNOpenStack Neutron with OVNCoverage notes
Segments (logical switching)Zones, VNets and subnets with VLAN or VXLAN-based zonesNetworks and subnets created through Neutron, realized by OVN logical switchesBoth cover overlay segments; confirm MTU and underlay requirements for your fabric
Tier-0 routing (north-south)Routing is handled by the host and upstream router, not a dedicated edge gateway objectProvider networks and external routers attached to the physical networkPartial for both; confirm how BGP peering and edge redundancy will be rebuilt
Tier-1 routing (east-west)Subnet gateways and host-level routing between VNetsNeutron routers with OVN distributed routing across compute nodesOVN is closer to Tier-1 semantics; Proxmox needs firewall and routing design work
Distributed firewall (stateful, per-VM)Firewall rules at datacenter, node and VM or container levelSecurity groups enforced by OVN on each hypervisorPartial for both; confirm rule volume, rule ordering and logging against your current policy
Gateway firewallFirewall rules applied to host or edge interfacesRouter and external network policy via Neutron and firewall-as-a-service extensionsNeeds confirmation of the exact feature set in your release; plan a separate edge firewall if needed
Tag-based or dynamic groupingAliases and IP sets maintained manually or by automationSecurity group references and address groups, with automation for membershipGap for both; NSX tag-driven groups usually need an external source of truth such as inventory or CMDB sync
NAT (source, destination, SNAT and DNAT)Handled by host iptables or nftables rules maintained through the firewall or custom configurationFloating IPs and router NAT managed by NeutronPartial; confirm NAT rule counts and whether they need to be scripted or managed as code
Load balancingNot a built-in SDN feature; typically an external load balancer VM or applianceOctavia load balancing service where deployedGap for Proxmox; confirm Octavia availability and sizing in OpenStack before committing
IPAMIPAM plugins and subnet management in the SDN configurationNeutron subnet pools and address allocation, optionally integrated with external IPAMBoth are workable; confirm integration with your existing IPAM system of record
Third-party service insertionNot supported as a native service chain; use external appliances in the traffic pathService function chaining is limited; plan inline appliances on the provider networkGap for both; confirm the architecture for IDS, IPS or next-generation firewall inspection before migration

Which open-source networking option fits which NSX estate

Proxmox VE SDN suits a team that runs a KVM cluster for its own applications and wants networking managed from the same web interface as compute and storage. Its model is zones, VNets and subnets defined cluster-wide, with firewall rules applied at the datacenter, node and guest level. This maps well to a typical NSX estate that uses a handful of segments and a modest set of distributed firewall policies, because the concepts translate without a separate controller to operate.

  • Segments become VNets: Each NSX segment maps to a VNet inside an SDN zone, with subnets and gateways defined in the same place as the VM configuration.
  • Firewall at several levels: Rules can be set at datacenter, node and VM or container level, which covers most east-west policy needs in a small to medium estate.
  • Routing is simpler: Expect fewer routing constructs than NSX Tier-0 and Tier-1 gateways, so complex multi-tier routing may need to stay on existing physical or firewall devices.
  • Operations skills: Linux networking, Proxmox cluster administration and basic routing are enough for most teams, with no separate SDN controller to learn.
  • Automation: Configuration is available through the API and tooling, but multi-tenant self-service is limited compared with a cloud platform.

Before you commit, confirm the current SDN zone types, routing features and firewall object model against the Proxmox VE documentation for your target release, and test your heaviest NSX policy set in a lab first.

Running NSX-backed workloads beside open-source networking during the move

Most estates cannot move every VM in one window, so NSX segments and the new open-source zones will run side by side for a period. The cards below cover how to connect the two domains, where policy must be duplicated first, and the parallel risks that break workloads during each wave.

Routed hand-off between domains

Connect the NSX overlay segments to the new Proxmox VE SDN zone or OpenStack Neutron network through a dedicated VLAN or a routed transit subnet, not through a stretched layer 2 domain. A routed hand-off keeps broadcast traffic and failure domains separate and makes each wave's traffic path visible in the routing table. Confirm which gateway owns the default route for migrated subnets before the first wave.

Duplicate firewall rules at the perimeter

Before moving any VM, recreate the distributed firewall rules that protect it as perimeter or zone rules on the destination side, and keep the NSX rules active on the source. Because distributed firewall policy follows the vNIC, a VM that leaves NSX loses its east-west rules unless equivalent rules exist elsewhere. Export the rule set per security group and test each one with a traffic check before the cutover.

IP address conflicts

Overlapping address space is the most common coexistence failure. A migrated VM that keeps its address while a twin or DHCP scope still exists in NSX can cause silent ARP or routing faults. Keep an authoritative IPAM record for every subnet and confirm that no address is assigned in both domains during a wave. Reserve addresses for each wave ahead of time.

MTU mismatches on overlay paths

Geneve or VXLAN overlays add encapsulation overhead, so a path that works with NSX can drop large packets once it crosses a destination network with a different MTU. Check the MTU on every physical uplink, bridge, VLAN and virtual NIC along the route, and test with non-fragmenting pings of the expected size. Ask the destination platform team to confirm the MTU setting in writing before the first wave.

East-west policy gaps during cutover

A VM moved in one wave can lose its protection from peers that still sit on NSX, so traffic that was blocked internally becomes open or the reverse. Map each application's dependencies, then move tiers together so that database, application and web workloads share one policy boundary during the change. Record the expected allow and deny results for each tier as evidence for the wave.

Fallback path for failed waves

Define a rollback before the wave starts: the source VM remains powered off but intact on vSphere, its NSX rules stay in place, and the routed hand-off can be removed to restore traffic. Set a go or no-go point after the functional checks and assign one owner to make the call. Test the rollback once in a non-production wave, because a fallback that has never been run is rarely fast under pressure.

What microsegmentation looks like after leaving NSX

The main change after leaving NSX is where the policy lives. NSX distributed firewall rules attach to virtual NICs and are matched against groups that are driven by tags and inventory membership, so a new VM picks up policy automatically. Open-source replacements usually enforce policy per VM or per host interface instead. On Proxmox VE, that means the datacenter, node and VM firewall levels with security groups and IP sets. On OpenStack with Neutron and OVN, it means security groups applied to ports. In both cases, you should expect to write group membership and rule intent yourself, and to confirm how each platform handles a VM that is created without the policy attached. Treat the rule set as code, store it in version control, and review changes the same way you review application releases.

Rebuild the groups from an application dependency map rather than copying NSX group names one for one. Start from observed flows: capture east-west traffic for a representative period, cluster it by application tier, and turn the clusters into IP sets or security groups that name the business service. Then apply a default-deny posture inside each zone and allow only the flows that the map shows are required, including DNS, time synchronization, monitoring and backup paths that are easy to miss. Test each rule set against the traffic it is meant to allow and against deliberately blocked connections from every tier. Do not assume the new platform matches NSX behavior for stateful inspection, logging, intrusion detection or service insertion; confirm each of those capabilities separately in your own lab before you claim them.

An assessor will want evidence that policy is applied to every workload in scope, not only that rules exist. Produce it by exporting the firewall configuration for each VM or port, reconciling that inventory against your asset register, and showing that every in-scope system has an assigned group and a default-deny baseline. Keep the test records from each rule set, the dependency map version it came from, and the change history for both. Ask your auditor which control objectives they will sample and what format they accept, because the reports you produce will differ from NSX dashboards. DeployOpen can prepare this evidence and the test plan as part of a fixed-scope engagement, but the independent assessment remains the auditor's responsibility.

How to move segments, firewall rules and routing in waves

The sequence moves NSX networking in small, reversible waves so each segment, firewall policy and gateway is proven on the target before production traffic depends on it. Each step ends with a check that the team can show to its own change board.

  1. Inventory segments, rules and routing

    The network team exports the NSX configuration: logical segments with their subnets, VLAN or overlay type, DHCP and DNS settings, distributed firewall sections and rules, gateway and routing configuration, and any NAT or load balancer objects. Use the NSX API or the export tools in your installed version, and confirm the export format against Broadcom's current NSX documentation rather than assuming a converter exists. The step is done when every segment and rule has a row in a single inventory that lists its purpose, its source and its current owner.

  2. Map groups to application owners

    Application owners review the inventory and confirm which workloads sit in each NSX group, which ports and protocols each application needs, and which flows are inter-application traffic. Security engineers flag rules that are overly broad, unused or duplicated, so the target policy does not copy legacy exceptions. The step is done when each group has a named owner, each rule is marked keep, rewrite or retire, and the owners have signed off on the flow list.

  3. Build target zones or networks

    On Proxmox VE, the network team creates the SDN zone, VNets and subnets that match the approved segment design, and configures the firewall at the datacenter, node and VM levels. On OpenStack, they build Neutron networks, subnets and routers on OVN, with security groups for each application tier. Confirm each object type and its options against the Proxmox VE SDN and firewall documentation or the OpenStack Neutron and OVN documentation for your release. The step is done when the target objects exist, match the inventory and are visible in the management interface or API.

  4. Validate routing and MTU with a test VM

    Place a test VM on each target network and check reachability to its gateway, to a sample of peer workloads and to the external routes it needs. Measure MTU end to end, including any overlay encapsulation overhead, with the don't-fragment flag set, and confirm that DHCP and DNS resolve from the new segment. Record the results and any firewall rules that blocked expected traffic. The step is done when the test VM passes the agreed checks and the team has a written list of MTU values and routing paths that production workloads will use.

  5. Move low-risk segments first

    Migrate isolated, low-traffic segments first, such as development or internal tooling networks, and move their VMs in small batches. For each batch, the application owner confirms service health and the network team checks firewall logs for unexpected drops. Keep the NSX segment in place until the batch has run for the agreed observation period. The step is done when each wave has a signed-off checklist and no open firewall exceptions are left unexplained.

  6. Cut over gateways and firewall policy

    Schedule the cutover of production gateways and firewall policy in a change window. Apply the target firewall rules in monitor or log-only mode where the platform supports it, then enforce them in order from the most specific rules to the default deny. Keep the NSX gateway and rule set in a documented, tested state so the team can return traffic to it quickly. The step is done when production flows pass the post-change checks and the firewall logs show only the expected denies.

  7. Document the rollback plan and retire NSX

    Before each cutover, write a rollback plan that names the trigger conditions, the person who decides to roll back, the exact steps to restore the previous gateway and rules, and the time limit for the decision. Rehearse it on a test network if possible. Once every wave has been stable through its review period, the team archives the NSX configuration export and retires the NSX components. The step is done when the rollback procedure has been tested, the archive is stored under your retention policy and the change record shows NSX removed from production.

Questions buyers ask before replacing NSX

What does replacing NSX cost, and what drives that cost up?

The cost comes mostly from staff time, testing and rebuilding firewall policy, with some spend on physical network changes. The open-source software itself carries no license fee. Proxmox VE's software is free to use, and its subscriptions are optional support and repository access. The main recurring costs are operations staff who run the SDN zones, firewall rules and routing, plus any support plan you choose. The biggest one-time cost is usually the rule rebuild: every NSX distributed firewall rule, group and tag has to be translated, reviewed and tested against real traffic. Costs rise with the number of rules, the number of security groups, how much east-west traffic must be proven, and whether top-of-rack switches or edge firewalls need changes. Ask any provider for a quote that lists these components separately, with who performs each one.

How long does an NSX replacement take?

The duration depends on how many segments, firewall rules and routing relationships the estate has, and on how much of the work can run in parallel with the existing environment. Teams usually inventory NSX objects first, then build the target networks in a test cluster, then migrate workloads in waves. Duration grows with the number of security groups that have no clear owner, the number of applications with undocumented flows, and the number of change windows the business allows. Dependencies on hardware lead times and on the VMware cutover schedule also matter. Ask for a written plan with milestones, and confirm the wave sizes and rollback steps before accepting any timeline.

Can our own team replace NSX without outside help?

A capable team can do it, but only if it has people who understand both the NSX policy model and the target platform's network model. Proxmox VE SDN uses zones, VNets and subnets with firewall rules applied at the host, VM and cluster level, so NSX groups and tags do not map one to one. Teams without that skill often underestimate the flow discovery and the testing. Whether to bring in help depends on your staff's experience, your change calendar and how many applications are regulated. Fixed-scope engagements with written deliverables are one option, and so is training your own staff. DeployOpen implements, hardens and documents self-hosted platforms in your own environment, but the scope is agreed in writing before work starts.

What does the network and security team need to provide?

The network and security teams own the decisions that the software cannot make for you. They need to supply the current NSX rule base, the list of applications and their required ports, the routing design and the upstream firewall policy. They also approve the target segmentation model and the exceptions. Expect to involve them in:

  • Mapping NSX security groups to owners and business services
  • Deciding where enforcement sits, on hosts, in the VM firewall or at upstream firewalls
  • Validating routing, VLAN and MTU settings on physical switches
  • Signing off test evidence before each migration wave

If these roles are not staffed, the project will stall at the first rule that nobody can explain.

Does Proxmox VE per-socket pricing cover networking features?

Yes, every Proxmox VE subscription tier includes the same software features, including the software-defined networking and firewall features. The tiers differ in support entitlements and access to the enterprise repository, not in what the software can do. The published tiers are Community, Basic, Standard and Premium, priced per CPU socket per year, and the software can be used without a subscription. The Community tier includes no support tickets, Basic includes 3 tickets with a 1 business day response, Standard includes 10 tickets with a 4-hour response, and Premium includes unlimited tickets with a 2-hour response, according to the Proxmox VE pricing page. Networking work still needs hardware, staff and testing, which the subscription does not cover. Confirm current prices and tiers with Proxmox before you budget.

Can we reach NSX-level microsegmentation after the move?

You can get close to the same outcome, but parity depends on what your NSX policy actually does today. Proxmox VE firewall rules can be applied at datacenter, node, VM and container level, and SDN zones separate tenants and networks. That covers many microsegmentation designs, but it is not a one-for-one copy of NSX distributed firewall behavior, tags or identity-based groups. Gaps usually appear in context-aware rules, centralized policy views and automated tagging from external sources. Before committing, map every NSX rule to a target rule or an accepted compensating control, and list the gaps. Confirm each platform capability against the vendor documentation and your own tests rather than assuming parity.

What evidence will an auditor expect from the new network controls?

An auditor will expect you to show that the new controls exist, are configured as designed, and work over time. Typical evidence includes the approved segmentation design, the firewall rule inventory with owners and business justifications, change records for each rule, and test results proving that blocked flows stay blocked. You will also need access review records for the management plane, logs showing rule changes and denials, and evidence that backups of firewall configuration are restorable. Map each evidence item to the control it supports in your framework before the assessment starts. DeployOpen prepares systems, controls and evidence for compliance assessments, but independent auditors and certification bodies issue any audit report or attestation.

Which firewall rules break first when NSX is removed?

The rules most likely to break are the ones nobody documented, such as rules that allow management traffic, backup traffic, monitoring probes and cross-application dependencies. Rules tied to NSX-specific concepts like dynamic groups or tags also need manual translation. Before cutover, capture traffic flows for each application over a full business cycle, compare them with the rule base and test each wave in a non-production copy. Keep the NSX environment running in read-only or parallel form until the target rules have passed testing, so you can roll back a single application without reverting the whole estate.

What the networking replacement costs beyond licence fees

The NSX licence line leaves the renewal, but the replacement carries its own costs, and most of them recur. On the Proxmox VE side the software is free, while the subscription is priced per occupied physical CPU socket per year: Community at 120 euros, Basic at 370 euros, Standard at 550 euros and Premium at 1,100 euros, according to the Proxmox VE pricing page. Every tier includes the same features, so the choice is about support entitlements and repository access, not functionality. On the OpenStack side Neutron with OVN is also free, but the cost moves to staffing: people who operate Neutron, OVN, Keystone and the deployment tooling. Ask the vendor or partner to price each option as one-time work (design, migration, policy rebuild) and recurring work (subscriptions, support, patching, on-call), using the same host count and the same five-year view.

Several costs sit outside the networking product and are often missed. Physical switches and firewalls may need new VLAN trunking, MTU settings, BGP or static routes, and rules that once lived in NSX must now be written in firewall rules on hosts, zone-level policy or upstream appliances. Confirm with your network team whether the existing perimeter firewall will stay as the north-south control, because that decision sets how much hardware and licensing change. Engineering time is usually the largest one-time item: exporting distributed firewall rules, mapping NSX security groups to tags, aliases or ipsets, and proving that flows still behave the same way in a test segment before cutover. Budget testing and rollback rehearsal explicitly.

Training and operations recur. Teams that know NSX Manager and vCenter must learn Proxmox SDN or OVN northbound and southbound concepts, and an OpenStack team needs skills the vSphere team may not have. Ask each bidder for the named roles it assumes, the training it includes, and the support hours that cover incidents, patching and upgrades. The main drivers that raise cost are the number of sockets and hosts, the number of distinct tenants or security zones, any requirement for 24-hour support, and how much of the policy must be rebuilt rather than exported. Ask for the written scope, deliverables, acceptance tests and exclusions, so the quote can be compared line by line with your current NSX run cost.

How DeployOpen scopes and delivers networking replacement

DeployOpen plans, implements, integrates, hardens, documents and supports self-hosted open-source platforms inside your own infrastructure, including the network layer that NSX provides today. Engagements are fixed-scope, with the segments, firewall policy, routing and evidence agreed in writing before work starts.

How we scope

  • Inventory of NSX segments, distributed firewall rules, gateways and routing peers in your environment
  • Mapping of each NSX construct to a Proxmox VE SDN zone, firewall rule or OpenStack Neutron with OVN equivalent
  • Written list of gaps, such as features you must confirm on the target platform before cutover

How we build

  • Build of the target networking layer in your own cloud accounts, data centers or air-gapped network
  • Configuration of firewall policy and routing, with rule sets reviewed against your security requirements
  • Integration with your identity, logging and monitoring so network changes leave an audit trail

How we hand over

  • Runbooks for rule changes, segment creation, routing updates and rollback during each migration wave
  • Documentation of the network design, policy inventory and test results for your security and compliance teams
  • Knowledge transfer to your platform and network staff, so operations do not depend on DeployOpen

How we support

  • Ongoing support, upgrades and continuous testing are available as retainers after handover
  • Periodic review of firewall policy and platform releases, with changes scoped and agreed in writing
  • Security testing of applications, APIs and network segments to confirm that policies behave as designed

Talk to our team.

Tell us what you're working on, whether it's a deployment, an audit, a security test or a cyber range. You'll speak with an engineer who can help you scope it.

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  • NDA on request: we can sign before you share details.
  • Clear next steps: a scope and plan after the call.