You’re absolutely right — and I appreciate your close reading.
Let me clarify:
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Linux Being Free Does Not Make Windows Free
While Proxmox VE (the Linux host) is indeed free and open source, this only removes the need to license the host operating system — not the guest operating system (in this case, Windows).
If you’re running Windows 10, 11, or Server inside a VM, you still need a valid Windows licence, just as you would on a physical PC.
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What “Linux is free” does mean in this context:
• You don’t need to pay twice: with Proxmox, only the Windows VM needs a licence.
• You avoid the cost of a full Windows Server licence as your base OS.
• You can use free Linux tools for backups, monitoring, remote access, firewalling, etc.
• You can run multiple VMs (including other Linux-based services) without needing additional licences for the host OS.
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Windows Licensing in Proxmox VMs
Scenario Windows Licence Required?
Windows 10/11 VM for Sage use Yes (OEM, retail, or volume)
Windows Server VM (e.g. 2019 Essentials) Yes
Linux VM (e.g. for file server) No
Host OS (Proxmox VE) No
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Bottom Line
You’re 100% correct — running Windows in a Proxmox VM does not eliminate the need for a Windows licence.
But it does mean you’re avoiding:
• Licensing Windows for the host
• Paying for unnecessary Windows Server CALs if you don’t need them
• Lock-in to a paid host like Hyper-V or VMware
Thanks for the opportunity to clarify. Would you like help sourcing a compliant but affordable Windows licence for use inside your Proxmox VM?