Part 2: n8n: Cloud vs Self-Hosted Solutions – Which to Choose?

After discovering the capabilities of n8n, a logical question arises: “How do I start using it?” n8n offers two main deployment approaches, each with its pros and cons: Cloud service (n8n Cloud) and Self-Hosted deployment. The choice depends on your needs, technical skills, and security requirements.

n8n Cloud: Simplicity and Convenience

n8n Cloud is the official service by the developers of n8n. Essentially, it’s “n8n as a service,” where all infrastructure and maintenance are handled by the n8n Inc. team.

• Pros:

  • Incredible ease of setup: You register, pay a subscription, and your n8n is ready to go in minutes. No need to configure servers, Docker, databases — nothing at all!
  • Fully managed service: The n8n Inc. team takes care of everything: updates, security, scaling, backups, and availability. You simply use the tool.
  • Effortless scalability: As your workflows and tasks grow, n8n Cloud automatically scales to handle the load. You don’t have to worry about it.
  • Access from anywhere: Access your workflows via a web interface, meaning you can manage automations from anywhere with internet access.

• Cons:

  • Cost: n8n Cloud uses a subscription model, and with high operation volumes or many users, it can become more expensive than self-hosting.
  • Vendor dependency: You’re relying on the infrastructure, policies, and decisions of n8n Inc. In case of an outage on their end, your automations may temporarily stop.
  • Potential limitations: Depending on the plan, there may be limits on the number of workflows, executions, or access to advanced features.
  • Data privacy: Your data is processed on n8n Inc.’s servers. For companies with strict security policies, this may be a critical concern.

• Who is n8n Cloud for: Beginners in automation, small teams without dedicated tech staff, startups that need fast and hassle-free setup, and anyone who values convenience and doesn’t want to dive into technical details.

Self-Hosted n8n: Full Control and Flexibility

Self-hosted n8n means you install and manage n8n on your own server (virtual or physical). This gives you maximum control.

• Pros:

  • Full control: You manage your n8n installation, data, configuration, and security. Your data never leaves your infrastructure.
  • Unlimited flexibility and customization: You can tailor n8n to your needs, install custom nodes (if you develop them), and integrate it with internal systems.
  • Long-term cost savings: If you already have server resources (e.g., VPS on DigitalOcean, Linode, or your own server), the cost of running n8n boils down to server fees. For large-scale use, this is often cheaper than a cloud subscription.
  • Data privacy: Your data stays on your servers, which is essential for companies with high confidentiality requirements.
  • Unlimited usage: No limits on workflows or executions, except for the resource limits of your server.

• Cons:

  • Setup complexity: Requires technical knowledge: working with the command line, configuring Docker, Nginx (for proxying), SSL certificates, and a database (PostgreSQL or MySQL).
  • Maintenance and support: You’re responsible for n8n updates, monitoring, backups, security, and troubleshooting.
  • Scalability management: As load grows, you’ll need to manually scale your server, add resources, or configure clusters.
  • Time and resources: Setting up and maintaining self-hosted n8n takes time and technical effort.

• Who is Self-Hosted n8n for: Developers, technically skilled users, companies with strict data privacy and security policies, and those who want to save money long-term while maintaining full control over their automation.

How to Choose? Make an Informed Decision

Choosing between cloud and self-hosted n8n isn’t about “better” or “worse” — it’s about “what’s better for me.” Ask yourself the following questions:

1. Your budget? Are you willing to pay a monthly subscription for convenience, or do you want to save by investing time and effort into setup?
2. Your technical skill level? Are you comfortable working with servers, Docker, and the command line, or do you prefer out-of-the-box solutions?
3. Data security and privacy needs? Does your company have strict policies about where data is stored and processed?
4. How fast do you need to launch? Do you need automation “right now,” or are you willing to spend time on a detailed setup?
5. Planned automation scale? Will your use cases be simple and limited, or will you have hundreds of complex workflows?

Once you’ve answered these questions, you’ll be able to make the right choice. Both options are powerful and effective — they’re just suited to different situations.

In the final part of our series, we’ll look at alternatives to n8n in the no-code automation market to give you a complete view of available tools.