I’m hosting a few services that are always on type (home assistant being the most obvious). I’m also looking at doing a firewall replacement with something like pfsense. Am I asking for trouble if I do the firewall as a VM with other machines sharing the hardware?
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Nope, that’s what most of companies with no hardware appliances do.
It’s fine, until there are issues with the host.
If it’s a homelab where you just keep messing and testing stuff, just remember that if you reboot the system you’ll be with no internet until it’s back up.
If during reboot there are issues you’ll stay with no internet until you fix it.
So if you are the type that likes to test everything you come across, and don’t have a lot of experience, I don’t recommend it.
I had a setup like this and I spent more time without internet than with it 😅
I virtualize all of the services that I “need” to to have running on one computer. Opnsense, pihole, cloudflare, vaultwarden, nginx, unifi, wire guard server and a lightweight Linux distro with Gui to remote into if needed.