Had to do this when I moved countries. Went from multiple HP Microservers down to a 2014 Mac Mini that handles TimeMachine backups and my photos and a Lenovo M93p that's been upgraded as far as it can go with a few terabytes of external storage. Potent enough to run the odd VM when I need to test something, and comfortably runs Docker for HomeBridge, Phoscon, and file shares.
Homelab
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Dedicated router hardware with your os of choice, 2 hp desktop minis (or equivalent) for virtualisation and some sort of harddrive for a Nas that you can scale as required.
Id go to https://labgopher.com/ and find some cheap, newish hardware. Would not buy anything brand new.
I would buy a single n305 mini pc with at least 2 2.5gb nics, and maybe a godlike pc for vm's to play around with
A couple of gen9 Proliant servers. They're cheap, easy to source, plenty powerful for a homelab, have surprisingly good power management, and they're much quieter than previous generations (because of the power management). If you go with LFF drives, you can find surplus ones which have plenty of room for homelab stuff. SAS drives are so cheap, I've bought enough extra drives to replace any which fail.
For instance: https://www.ebay.com/itm/284061636798 is less than $200 with dual CPUs, a RAID contoller, and iLO for out of band management. You can source memory on eBay for cheap (for instance https://www.ebay.com/itm/266287238575), and as I mentioned, SAS drives are so cheap they're almost disposable (https://www.ebay.com/itm/225874909271).
So total cost for one of these servers with 128GB memory and four 8TB (24TB usable with RAID 5) drives would be $463.48. You could spin up two of them for less than your $1,000 budget and be able to do a BUNCH of cool stuff with them. Or you could just pack one with like 512GB memory and do everything on one server with virtual machines.
On my gen 9 DL380s with 12 4TB drives, I'm getting ridiculous disk speeds:
[root@neuromancer vms]# dd if=/dev/zero of=bigfile bs=16M count=1024 oflag=direct status=progress
16475226112 bytes (16 GB, 15 GiB) copied, 10 s, 1.6 GB/s
1024+0 records in
1024+0 records out
17179869184 bytes (17 GB, 16 GiB) copied, 10.3636 s, 1.7 GB/s
So over a gig and a half per second direct I/O writes. I spin up VMs on these servers in literally minutes, and I've got enough memory to have dozens of virtual machines. I have RHEL, Fedora, and Windows machines (my wife is a Microsoft sysadmin, she tests stuff on those).
The downside is that even with good power management, they do draw a fair amount of power and generate a fair amount of heat. I have three of these in my home office, and during the summer, it kept my office slightly warmer than I like.
For the OS, I use the free developer edition of RHEL - those skills are very marketable. https://developers.redhat.com/. I use RHEL for my VMs so I can play with stuff like NFS services, the automounter, user management, even stuff like OpenShift cluster members as VMs. I've learned a lot using my homelab, and it's helped my career a lot.
Buy a new N100 microPC with 32GB RAM and m.2 drive, Sabrent 5-bay USB_3 DAS, a couple 10TB drives. Easy low-power single box home server with room to expand. You also could add a good switch and box of Cat8 (cable always > WiFi)
Spend the rest on another hobby!
That's about $1000 more than most people have.
My suggestion is invest in networking equipment but it will not cost you $1000. Maybe a switch and a couple mini PC's and if you have to buy used retail it's maybe $200. If you want to get into NAS and streaming than you're looking at spending some money because reliable, preferably fast storage is a must and expensive
What do you guys do with these home labs?
I got an enterprise class 19" short depth chassis, whit supermicro motherboard and a xeon D (they are soldered to motherboard) whit 8 cores at 2.something GHz, multithreading and so on. Bought a 128GB ecc ram kit and a pair of intel enterprise 1TB ssds. Installed proxmox, whit mirrored discs, and it's now running 8 containers and 3 vms. Really low power consumption, just a bit loud but perfect for the garage. Placed inside an ikea lack table and mounted up above a door. Avoid buying consumaer class ssds as they are gonna last you only a few months in a configuration like this (that comes from experience, 20% wear in 6 months whit the initial Kingston I bought)
get a synology nas instead of a giant enterprise server. I only boot it when i need to use it as the power consumption is so high.
I'd buy the highest memory GPU I could get my hands on and slap it in my computer. I'd be playing with AI because it's probably going to replace us all in the not too distant future.
People are probably going to be like "wELl Ai HaLOOOsiNaTes or GetS ThiNgs WRonG". Yep, and so do people. We also had vacuum tubes and literal bugs before we had transistors and metaphorical bugs. This isn't a steady march to computers everywhere. This is a sprint to see who replaces all thinking work with AI agents first. The controller of the most successful agents will own the labor force.
So, either learn to build and repair the looms or become a luddite. Focus your lab money on AI.
mini pc to run pfsense on , used managed gig switch, used dell server from ebay. Buy some decent drives with what’s left over.