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I don't think Proxmox is anywhere near ready for that sort of shift. It's interesting what a big hole in the market VMWare is leaving and nothing quite fills it. OpenStack is the closest, but way more complicated than VMWare, and doesn't work at all for smaller deployments.
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Former VMware service provider here. We switched about 1,000 VMs from VMware to Proxmox VE a couple years back, and it's been one of our best moves. We run Proxmox hyper-converged now, love the built-in VM firewalls, solid backups with PBS, and Ceph storage. The paid subscription gives us reliable updates, too.

Hardware requirements for Proxmox are way more flexible (and cheaper) than VMware, in our experience. Plus, more MSPs are jumping on the Proxmox train, so the support scene is growing fast.

Proxmox isn’t a perfect VMware clone, but it covers a lot of ground for service providers or mid-sized setups that want reliability, flexibility, and lower costs.

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I’m not sure that’s true for larger scale installs but small scale VMware installs are probably less easily replaced by solutions that are also as well supported and have a path for expanding.

Doing a head-on VMware takeout path hasn’t been a good business strategy for companies that tried it.

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For small SMBs using Proxmox is reasonably ok-ish. Running in production for 2+ years already our customers are quite happy. We also sent some patches to Proxmox for other much larger clients...
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