Starting a homelab? We break down the pros and cons of using containers (Docker) vs. a hypervisor like Proxmox on your first server. Find the best path.

You’ve got an old laptop gathering dust on a shelf. You know it’s still got some life in it, but you’re not sure what to do with it.

Here’s an idea: Turn it into a homelab.

A homelab is just a home server where you can run your own private services. Think of it as your own little corner of the internet. You can host a personal VPN, a password manager, game servers, a media center like Plex, and so much more. It’s a fantastic way to learn about tech and take back control of your data.

But when you first start, you hit a fundamental question: How should you run all these things? This usually boils down to two popular choices: using containers directly or using a hypervisor like Proxmox.

Let’s break down what that actually means.

What We’re Trying to Run

First, let’s get a picture of what a simple homelab might look like. Based on what most people want to start with, a typical list includes:

• A VPN: To securely access your home network from anywhere.
• A NAS (Network Attached Storage): A simple way to store and share files across your devices.
• A password manager: Something like Vaultwarden to keep your passwords secure and synced.
• Pi-hole: To block ads across your entire network.
• Fun stuff: Private servers for games like Valheim or FoundryVTT.

Down the line, you might want to add heavier hitters like a Plex or Jellyfin media server, or even a dedicated firewall like pfSense. The hardware in a typical 8th-gen i5 laptop with 16GB of RAM is more than enough to handle all of this.

The real question isn’t about power, it’s about the right way to set it all up.

Path #1: The Straight and Simple Docker Approach

This is often the most direct route.

Here’s how it works: You take your laptop, install a standard Linux operating system on it (like Ubuntu Server), and then you install Docker.

Docker is a container platform. Think of containers as lightweight, mini-packages that hold a single application and everything it needs to run. You can have a container for Pi-hole, another for Vaultwarden, and so on. They all run on top of your single Ubuntu operating system.

The Good:

• It’s simple to grasp. You learn one OS (Ubuntu) and one tool (Docker).
• It’s very popular. There are endless tutorials and guides for setting up just about anything with Docker.
• It’s efficient. Containers have very little overhead, so they don’t waste your laptop’s resources.

The Not-So-Good:

• It can be limiting. Some software, particularly networking tools like the pfSense firewall, can’t run in a container. They need a full-blown Virtual Machine (VM). With this setup, you’re stuck.
• It’s less isolated. All your containers share the same underlying OS kernel. If you make a mistake and mess up the core operating system, everything could come crashing down at once.

This path is great for getting your feet wet, but you might hit a wall sooner than you think.

Path #2: The Flexible Proxmox Approach

Now for the other option. Proxmox VE is a bit different. It’s a specialized operating system built for one purpose: running other operating systems. It’s a “hypervisor.”

You install Proxmox directly onto your bare laptop—it is the operating system. Then, from a handy web browser interface, you can create two kinds of things:

1. LXC Containers: These are a lot like Docker containers. They are lightweight, fast, and perfect for running most of your services like Pi-hole or a game server.
2. Full Virtual Machines (VMs): This is like having a complete, separate computer running inside your laptop. It has its own dedicated resources and its own full operating system. This is what you need for things like pfSense.

The Good:

• Ultimate Flexibility. You get the best of both worlds. You can use lightweight containers for most things and spin up a full VM whenever you need one. You’ll never hit a wall because a service requires a VM.
• Amazing Isolation. Each container and VM is its own little sandbox. If one crashes or you break something while tinkering, it won’t affect anything else. This is a huge deal.
• Snapshots are a Lifesaver. This is the killer feature. Before you try a risky update or a new configuration, you can take a “snapshot.” If something goes wrong, you can restore the container or VM to its previous state in a single click. It’s like a time machine for your server, and it makes learning so much less stressful.
• Central Management. Everything is managed from a single, clean web interface. No need to SSH into a command line for every little thing (though you still can!).

The Not-So-Good:

• Slightly Steeper Learning Curve. Just slightly. You have to learn the Proxmox interface first, and then you learn how to set up your services inside it. It might take an extra afternoon to get comfortable.

So, Which Path Should You Choose?

For a beginner who is curious and wants a setup that can grow with them, I almost always recommend starting with Proxmox.

While the direct Docker approach seems simpler at first, the benefits of Proxmox are impossible to ignore for a homelab. The “snapshot” feature alone is worth the price of admission (which is free, by the way). It gives you the confidence to experiment, break things, and learn without fear. We’ve all accidentally deleted a critical file or botched a configuration—Proxmox lets you undo that mistake instantly.

The fear that it’s “too complex” is mostly unfounded. The installation is straightforward, and the web interface makes managing VMs and containers surprisingly intuitive.

Starting with Proxmox from day one means you’re building on a foundation that won’t limit you in six months. When you suddenly decide you want to try out a new firewall or run a Windows-only server, you won’t have to start over. You’ll just click “Create VM,” and you’re on your way.

So, dust off that laptop. Your perfect learning playground is waiting for you.