Cloud or self-hosted
🎯You'll be able to
Choose between n8n Cloud and self-hosting for a given business, weighing cost, data location, maintenance and skills.
🏠The everyday picture
You can eat at a restaurant, where someone else runs the kitchen, or cook at home, where you choose every ingredient but also wash the dishes. Both feed you; they differ in control, effort and cost.
📘What it really is
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n8n Cloud is run by the n8n company. You sign up, and they handle servers, updates and backups. You pay a monthly plan based mainly on how many workflow runs (executions) you use.
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Self-hosted n8n runs on your own computer or server, usually with Docker:
docker run -it --rm -p 5678:5678 -v n8n_data:/home/node/.n8n docker.n8n.io/n8nio/n8n, then openhttp://localhost:5678. - You control where data lives and have no execution limits from n8n, but you handle updates, backups and security.
- The volume (
n8n_data) keeps your workflows and credentials when the container restarts. - n8n's licence allows self-hosting for your own business's internal use; check the licence before reselling n8n as a service.
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For a real business server, put n8n behind HTTPS (core Module 66), set a strong owner password, keep the
N8N_ENCRYPTION_KEYsafe (it protects saved credentials) and back up the data volume. -
Set the time zone (for example
GENERIC_TIMEZONE=Asia/Kolkata) so schedules run at the hours you expect.
📝A worked example
Sharma Textiles compared options:
| Question | n8n Cloud | Self-hosted on a small VPS |
|---|---|---|
| Who installs updates? | n8n | Sharma's developer |
| Monthly cost | A paid plan by executions | Server rent plus upkeep time |
| Where data is stored | n8n's cloud region | A server they choose |
| Time to start | Minutes | An afternoon, including HTTPS |
They started on a Cloud trial to learn, then moved to a small VPS once workflows were stable and they had a developer to look after it.
🌍Where it's used
- Agencies often self-host one n8n for many internal workflows.
- Start-ups use n8n Cloud to avoid running servers.
- Companies with strict data rules self-host so customer data stays on their own servers.
- Learners and freelancers run n8n locally with Docker to build and test before deploying.
📝Case scenario
A clinic wants appointment reminders that include patients' names and phone numbers. The owner is worried about where patient data goes. You explain both options: Cloud is quicker, but data passes through the provider's servers; self-hosting keeps it on a server the clinic chooses, with more upkeep. The clinic picks self-hosting on a server in India, and you agree who will apply updates each month.
🖱️Try it
Run n8n locally with the Docker command above. Create the owner account, set the time zone, and note where the data volume is. Stop and restart the container and confirm your account is still there.
⚠️Common mistakes
- Self-hosting without a backup plan. Sign: workflows exist only in one container. Fix: keep the data volume, export workflows regularly and test a restore.
- Comparing only the monthly fee. Sign: no time is allowed for updates and security. Fix: add the hours to update, back up and monitor a server.
🛠️For your project
The starter kit runs n8n on your own computer (with or without Docker). Note what you would change for a real client: hosting, backups and who applies updates.
✅Quick check
What do you gain and give up by self-hosting n8n?
Show the answer
You gain control over data and no execution limits from n8n; you take on updates, backups and security.
Why does the Docker command include a volume?
Show the answer
So workflows, credentials and settings survive when the container is stopped or replaced.