n8n Self-Hosting vs Cloud: Which is Best for Your Business?

Introduction: n8n Self-Hosting vs Cloud

In the age of automation, businesses are constantly looking for tools that facilitate workflow, save time, and reduce human error. The leading platforms that enable this change have an open-sun, node-based automation tool that helps connect applications and services to streamline business processes.

However, many businesses face a common question: Should you go with an N8N self-hosting or cloud version?

Both deployment models provide different benefits and exchanges in terms of cost, security, control, and measurement. In this blog, we will examine both options in detail so that you can determine which option is most suitable for your business needs.

What is n8n?

Before diving into deployment choices, let’s repeat quickly what N8N is.

The N8N (short for “nodemation”) is a fair-code license automation platform that allows you to connect APIs, databases, and applications—similar to tools like Zapier or Mac (Integrate) but with greater flexibility and control.

You can create custom workflows that automate repetitive tasks, such as:

• Sending automatic Slack alerts to new leads,
• Syncing data between CRM and database,
• Managing the e-commerce order,
• Organizing cloud infrastructure actions, and more.

The thing that separates the N8N is its developer-friendly, elaborate design—you can host it yourself, write custom nodes, and manage data without fully relying on the seller.

Understanding the Two Deployment Models

n8n provides two main deployment options:

1. n8n Self-Hosting — You host and manage the platform on your own server or infrastructure.
2. n8n Cloud — n8n manages everything for you in the cloud, under a subscription-based model.

Let’s compare both in detail.

1. n8n Self-Hosting

Overview

Self-hosting means that you download and run N8N on your own server, whether it’s on-promise setup or cloud infrastructure such as AWS, Google Cloud or Digital Ocean. You are responsible for installation, updates, backups and security-but you get complete control over every aspect of your data and configuration.

Advantages of Self-Hosting

A. Complete information control

If your business handles sensitive or ownership data, self-hosting ensures that you maintain complete ownership and control. No data goes through third-party servers, which makes it ideal for industries with strict compliance requirements (e.g., healthcare, finance).

B. Unlimited Customization

You can suit the platform to your needs—adjust nodes, change the core code, or coordinate with internal systems that are not accessible to the cloud, for example.

C. Flexibility of cost

Self-hosting can be cost-effective in the long run. Once deployed, the only cost is hosting, maintenance, and potential good resources—no recurring workflow or per-use fee on recurring.

D. Performance Optimization

You can tune the server configurations well, allocate resources based on workflow load, and scale as your automation needs increase.

Disadvantages of Self-Hosting

A. Technical complexity

Technical skills are required in server management, Docker, database, and security patches for the establishment and maintenance of the N8N. For non-technical teams, this can be a challenge.

B. Maintenance responsibility

You are fully responsible for updates, uptime monitoring, management of security events, and backing up data—all require time and resources for all.

C. Hidden charges

When it may look cheaper, the costs for infrastructure, SSL certificates, and potential downtime management may increase if not properly planned.

D. Scaling challenges

As the workflow volume increases, you must manually scale your setup (load balance, database optimization, etc.). To prevent the obstruction of operation.

2. n8n Cloud

Overview

With the N8N Cloud, you get the fully managed automation service hosted by the N8N GmbH.. It is subscription-based, which allows you to focus on creating workflows instead of infrastructure management.

The cloud version includes automatic updates, monitoring, and backup, which makes it ideal for teams seeking ease and reliability.

Advantages of n8n Cloud

A. No structured headache

The biggest benefit is the convenience—the N8N handles the cloud deployment, scaling, and maintenance so that your team can fully focus on creating and operating the workflow.

B. Automatic updates and backup

You always have access to the latest version without worrying about manual updates. Cloud backup ensures your workflow and data are safe.

C. Protection by design

Cloud instances benefit from built-in SSL, powered databases, and enterprise-grade security supervision. You do not need to manage the weaknesses yourself.

D. Measurement

The cloud platform automatically scales with your use. Even if you run 10 or 10,000 hanging punishments, the performance remains consistent.

E. Collaborative

It makes it easy for cloud teams to share workflow and cooperate safely. You can integrate team permissions, track changes, and invite multiple users.

Disadvantages of n8n Cloud

A. Repetitive cost

Price depends on the plan and the quantity of implementation. For businesses with heavy automation loads, monthly costs may increase compared to self-hosting.

B. Limited customization

You cannot change the underlying code or structure. Custom node development and deep system coordination are limited.

C. Concerns about the privacy of information

Although the N8N Cloud complies with strong data protection standards (such as GDPR), some organizations may choose self-hosting for full data sovereignty.

n8n Self-Hosting vs Cloud: Detailed Comparison Table

When to Choose Self-Hosting

Choose N8N Self-Hosting if you have a business:

• Handles sensitive or confidential data that requires strict entry control.
• There are in-house deities, or an IT team, capable of operating servers.
• Need custom facilities or node development that is not available in the standard version.
• Wants to avoid repetitive subscription fees.
• Selects the complete ownership of structural facilities and workflow.

For the best: Industries, developers, and tech-powered organizations that prioritize data control and customization.

When to Choose n8n Cloud

Choose n8n cloud if you have a business:

• Setup wants a ready automation platform to be used without complexity.
• Selects automatic updates, backups, and supervision.
• There is a lack of technical resources dedicated to operating servers.
• Focuses on fast deployment and scalability.
• Value team collaboration features and easy accessibility.

For the best: startups, small-to-middle businesses, and marketing or operations teams that seek ease and reliability.

Hybrid Approach: The Best of Both Worlds

Some companies adopt a hybrid model, using both Cloud and Self-Hosted setups for different use cases.

For example:

• Use n8n Cloud for marketing or customer-facing workflows that need rapid iteration.
• Use Self-Hosting for backend automations or sensitive data processes.

This approach offers flexibility while balancing control and convenience.

Pricing Overview (as of 2025)

While pricing can change, here’s a general snapshot:

• n8n Cloud offers tiered pricing based on executions (e.g., Hobby, Pro, Enterprise).
  • Starts around $20–$50/month for smaller plans.
  • Enterprise options come with SLAs, advanced scaling, and compliance support.
• n8n Self-Hosting is free to use but requires hosting infrastructure.
  • Cloud server costs (like AWS EC2 or DigitalOcean Droplets) typically range from $10–$50/month, depending on usage.

So, while Cloud may seem more expensive monthly, Self-Hosting can become costly in human resources and maintenance time if not automated.

Conclusion: Which is Best for Your Business?

The decision between n8n Self-Hosting and n8n Cloud depends largely on your business priorities — whether that’s control, simplicity, or scalability.

• Choose Self-Hosting if you need maximum control, customization, and data privacy — and you have the technical expertise to manage it.
• Choose Cloud if you want ease of use, managed updates, and zero infrastructure management, so your team can focus purely on building automations.

For many growing businesses, starting with n8n Cloud is the easiest path. As automation needs expand, migrating to a Self-Hosted setup can provide more flexibility and cost control over time.