As zaphod mentioned, you'll need something else to do the authentication in front of your esxi host. My guess is you likely do since Sophos UTM doesn't have the necessary capability to do the PPPoE authentication but does handle the protocol. My current setup is similar with FTTH -> ISP Sagemcom modem/router for PPPoE auth -> Sophos UTM HA hardware. If you have the ability to place that ISP modem/router into bridged mode you'll avoid the double NAT problem. In my case I wasn't able to place the router in bridge mode because of IPTV so I've placed my UTM in the DMZ of the router. This allowed my UTMs to obtain an external IP rather than be NAT'ed through the ISP router.
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