Being a noob and all I was wondering whats the real benefit of having a monolithic lets say proxmox instance with router, DNS, VPN but also home asssistant and NAS functionalitiy all in one server? I always thought dedicated devices are simpler to maintain or replace and some services are also more critical than others I guess?

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5 points

“Easier” and “simpler” are in the eye of the beholder.

A different way to approach it is to limit the failure domains. If this breaks how sad are you?

I would separate storage from the rest. Networking stuff together may be fine. Home assistant depends on how dependent on it your household is.

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2 points

This is the way.

There’s nothing worse than finding your DNS/DHCP has gone down and it’s a VM / container running inside a server that can’t start because it doesn’t have an IP address and you can’t resolve names to get the thing started.

Break things down into chunks that make sense - to you.

I have dedicated (low power) hardware for the interweb firewall / DHCP / core network stuff.

I have a NAS for storage with all the backups / reinstall images on (so I can rebuild the firewall if there’s no internet, for example)

Then I have everything else in a single server.

Sources: a house fire, water leak & many hardware failures & borked upgrades over many decades.

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