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ESXi Virtualization

Ubuntu Virtual Machine on ESXi Complete Setup and Configuration Guide

One ESXi host can run a whole shelf of Ubuntu machines - a file server, a test box, a learning lab - but only if each virtual machine is created with the right settings the first time. This guide covers the full path: creating the VM, choosing firmware, disk and network, installing Ubuntu, adding open-vm-tools, and fixing the problems that appear afterwards.

By Technical AnshuVMware ESXiUbuntu Server and DesktopSetup and troubleshooting
Watch the full video - Ubuntu virtualization on ESXi, the setup, configuration and troubleshooting, step by step

ESXi is the bare-metal hypervisor: it installs directly on the host machine and carves it into virtual machines, each with its own virtual CPU, memory, disk and network card. Ubuntu is the guest you will probably create most often, and the video above walks through exactly that on a live host. This page is the complete written version - the creation choices that matter, the install, the one package you must add after install, and an honest map of what to check when something does not work. Most Ubuntu-on-ESXi problems are born in the two minutes of the creation wizard, so we start there.

ESXi - Create a new virtual machine (example settings)
Guest OS family / versionLinux - Ubuntu Linux (64-bit)
FirmwareEFI
Provisioned disk40 GB, thin provisioned
Network adapterVMXNET3 on your VM network
CompatibilityHost default - do not lower it
CPU / Memory to start2 vCPU / 4 GB RAM
Example creation summary for a first Ubuntu VM - your sizes will follow the job the VM has to do
1

Before You Start - What the Host Needs

Three things must be true before the wizard opens. First, ESXi itself is installed on the host and you can reach its web client - the host machine is now a hypervisor, not a normal PC, so everything happens through that web interface or a remote console. Second, the host BIOS has CPU virtualization (Intel VT-x or AMD-V) switched on; without it, 64-bit guests will refuse to run. Third, you need space and an image:

  1. A datastore with free space - a first Ubuntu VM is comfortable in 40 GB, and thin provisioning means it only eats what it actually writes
  2. The Ubuntu ISO uploaded to that datastore (Datastore browser, Upload) - pick a current LTS release so the VM gets years of updates
  3. Ten honest minutes - rushing the wizard is how the wrong firmware and the wrong network get chosen

If the ISO upload is slow on your network, start it early; everything else in this guide is quick.

2

Create the Virtual Machine

In the ESXi web client, choose Create / Register VM and then Create a new virtual machine. The choices that matter:

  1. Name - something that says the job, like ubuntu-files or ubuntu-test, not "VM 3"
  2. Compatibility - leave the host default. A higher virtual hardware version unlocks newer virtual devices; lowering it only matters when a VM must move to an older host
  3. Guest OS family: Linux, version: Ubuntu Linux (64-bit) - this is not decoration; it presets sensible virtual hardware for Ubuntu
  4. Storage - the datastore with room on it
  5. On the customize screen, set CPU, memory, disk, network and firmware as the next section explains
3

The Four Settings That Decide Everything

Firmware: EFI. Modern Ubuntu expects EFI, EFI is what enables Secure Boot, and it is the ESXi default for new Linux VMs. BIOS (legacy) still works for Ubuntu, but treat the choice as permanent - an installed OS expects the firmware it was installed under.

Disk: thin provisioned. A thin disk grows as Ubuntu writes data, so a 40 GB disk might use 12 GB on day one. The honest catch: the datastore must be watched, because ten thin disks can promise more space than the datastore holds. Thick provisioning reserves the full size up front - safer for critical servers, wasteful for labs.

Network adapter: VMXNET3. It is VMware's own virtual network card, built for virtual machines, and Ubuntu carries its driver in the kernel. The emulated E1000E also works and is the fallback for odd cases - the adapter guide in this series compares them honestly.

Size: start small. 2 vCPU and 4 GB RAM run Ubuntu Server happily and Desktop acceptably. You can add later in a minute; an oversized VM mostly wastes the host. The sizing guide in this series gives the full honest numbers.

4

Install Ubuntu

Attach the ISO to the VM's CD/DVD drive, tick Connect at power on, power the VM on and open the console. Ubuntu's installer behaves exactly as it does on a physical machine:

  1. Choose Server or Desktop - Server for services and learning the terminal, Desktop only if you truly need the graphical environment; the choice guide in this series helps
  2. Let the installer use the whole virtual disk - it is a file on the datastore, nothing physical is being erased
  3. Create your user, set a strong password, and tick the OpenSSH server option on Server installs so you can log in remotely afterwards
  4. When the install finishes, reboot and disconnect the ISO from the CD/DVD drive, or the VM may boot the installer again

If the VM boots to a black screen or back into the installer, the cause is almost always the ISO still attached or the boot order - not a broken install.

5

First Boot Jobs - open-vm-tools and Updates

A fresh Ubuntu VM works, but ESXi is half blind to it: the host summary shows no IP address, and "shut down" from the host is a hard power cut, not a clean shutdown. The fix is one package from Ubuntu's own repository - VMware's recommended route for Ubuntu:

  1. sudo apt update
  2. sudo apt install open-vm-tools - on Desktop installs also add the desktop package: sudo apt install open-vm-tools-desktop
  3. sudo systemctl status open-vm-tools - it should show active and running
  4. Refresh the ESXi summary page - the guest IP address and hostname now appear, and graceful shutdown and restart from the host work properly
  5. Finish with the normal updates: sudo apt upgrade

This package earns its own full guide in this series, because it also decides how time sync, copy-paste and quiesced snapshots behave.

6

An Honest Note on ESXi Licensing in 2026

Nothing in this guide needs a paid feature - creating VMs, consoles, snapshots and OVF export all work on a standalone host. But be clear-eyed about the platform's ownership: after Broadcom bought VMware, the old free ESXi was withdrawn in early 2024, and a free edition later returned with ESXi 8.0 Update 3e in 2025, aimed at labs and non-production use, without vCenter management and with limits such as a cap on vCPUs per VM and no support. Paid licensing is now subscription-based and priced per core. Terms have changed more than once in two years, so check Broadcom's current licensing page before you build anything serious on an assumption - especially before running production work on the free edition.

7

Troubleshooting Map - Match the Symptom to the Fix

When an Ubuntu VM misbehaves, the symptom usually names its own cause:

  1. VM will not boot, or boots the installer again - ISO still connected, boot order, or the firmware changed after install
  2. No network - adapter type, wrong port group, or the guest's netplan still pointing at an old MAC address; start with ip a and lspci inside Ubuntu
  3. Host shows no IP and shutdown is a power cut - open-vm-tools missing or stopped
  4. Console tiny, laggy or clipboard dead - the console guides in this series; for daily work, use SSH instead of living in the console
  5. Clock drifting - fix with NTP inside Ubuntu, checked with timedatectl
  6. Everything slow - the host is over-committed; check total vCPU and RAM against the physical machine before blaming Ubuntu

Work the map in order and most "ESXi problems" turn out to be one setting, one package, or one honest hardware limit.

🔴 The standing rule: the creation wizard takes two minutes and decides the next two years. EFI firmware, a thin disk you actually monitor, a VMXNET3 adapter and open-vm-tools after install - get those four right and Ubuntu on ESXi is boring in the best way.

Watch Ubuntu on ESXi in the Video

The full process on a live ESXi host - creating the virtual machine, installing Ubuntu and fixing the common problems, exactly as they appear on screen.

Watch Full Video
Frequently Asked Questions

Which Ubuntu should I install on ESXi, Server or Desktop?

Choose by the job. Server is lighter, runs happily in 2 to 4 GB of RAM and is managed over SSH - right for file servers, web services and learning real Linux administration. Desktop adds the full graphical environment and wants at least 4 GB of RAM; pick it only when you need GUI applications, because over the ESXi console it will always feel heavier.

Do I install VMware Tools from the ESXi menu for Ubuntu?

No. For Ubuntu, VMware's recommended route is open-vm-tools, installed from Ubuntu's own repository with sudo apt install open-vm-tools. It gives the host the guest IP address and hostname, enables graceful shutdown from ESXi, and is updated by Ubuntu's normal update system. The old ISO-based tools installer in the ESXi menu is a legacy path for other systems.

Can one ESXi host run several Ubuntu VMs at the same time?

Yes - that is the point of the hypervisor. The honest limits are physical: total memory given to VMs must leave room for ESXi itself, thin disks must not promise more than the datastore holds, and every running VM shares the host's real CPU cores. Start each VM small, watch the host's performance tab, and grow only the VMs that prove they need it.

This guide is based on the Technical Anshu video on Ubuntu virtualization on ESXi - stuck on a step? Ask in the video comments and you will get a reply.