Choosing between n8n Local (self-hosted) and n8n Cloud depends entirely on your technical expertise, budget, data privacy requirements, and need for advanced enterprise features. n8n Cloud offers a managed, easy-to-start experience ideal for users who prioritize convenience and speed. In contrast, the self-hosted n8n Local option provides ultimate control, data sovereignty, and customization for those comfortable with managing their own server infrastructure.
The Core Dilemma: Control vs. Convenience
So, you’ve discovered the magic of n8n and you’re ready to build some powerful automations. But before you dive in, you face your first major decision: where will your n8n instance live? This isn’t just a trivial choice; it fundamentally shapes your experience with the platform.
Think of it like this: Do you want a move-in-ready apartment (n8n Cloud) where the landlord handles all the maintenance, or do you want to buy your own land and build your dream house from the ground up (n8n Local)? One gives you convenience and speed, the other offers complete freedom and control. Both are fantastic options, but they serve very different needs.
As someone who has deployed n8n in both environments for various clients, I can tell you that the “right” answer is always, “it depends.”
What is n8n Cloud? The ‘Set It and Forget It’ Approach
n8n Cloud is the official hosted solution. You sign up, get a login, and you can start building workflows in minutes. The n8n team handles all the complicated backend stuff—the servers, the updates, the security, the uptime. You just focus on what matters: automating your processes.
Who is n8n Cloud for?
This is the perfect path for:
- Beginners and non-developers: If you’re more focused on the what of automation than the how of server management, this is for you.
- Teams without dedicated IT support: You don’t need a DevOps engineer on standby to run n8n Cloud.
- Anyone who wants to get started fast: You can go from sign-up to a running workflow in under five minutes.
The Upside of the Cloud
Let’s be honest, the main advantage is simplicity. You get automatic updates with the latest features and security patches, a predictable monthly cost based on usage tiers (like Starter and Pro), and the peace of mind that comes with a managed service. All your data is securely stored in the EU (Germany, to be specific), which satisfies many data residency requirements.
Potential Cloud Drawbacks
Of course, there are trade-offs. You’re operating within n8n’s environment, which means you can’t, for example, install custom system-level dependencies for the Execute Command node. Your usage is also governed by your plan’s limits on things like active workflows and monthly executions.
What is n8n Local? The Power User’s Playground
Now, let’s talk about the self-hosted route, often called n8n Local or the Community Edition. This is the version you download from GitHub and run on your own infrastructure—be it a Raspberry Pi in your closet, a Docker container on your laptop, or a virtual private server (VPS) from providers like DigitalOcean or AWS.
Who Should Go Local?
Self-hosting is the go-to choice for:
- Developers and tinkerers: If you love having root access and fine-tuning your setup, you’ll feel right at home.
- Organizations with strict data privacy needs: For industries like healthcare (HIPAA) or finance, keeping data within your own virtual private cloud (VPC) isn’t just a preference; it’s a requirement.
- Heavy-duty users: If you plan on running hundreds of thousands of executions, the self-hosted Community Edition is incredibly cost-effective, as you have unlimited workflows and executions for just the price of your server.
The Power of Full Control
The biggest benefit is absolute control. Your data never leaves your server. You decide when and how to update. You can configure the environment precisely to your needs, allocating as much CPU and RAM as you see fit. This is ultimate freedom.
The Weight of Responsibility
With great power comes great responsibility. When you self-host, you are the IT department. You’re responsible for the initial setup (usually with Docker, which makes it much easier), performing updates, managing server security, setting up backups, and ensuring uptime. While it’s not impossibly difficult, it does require a certain level of technical confidence.
Feature Comparison: A Clearer Picture
Here’s where the decision gets more nuanced. The features you get depend not just on Cloud vs. Local, but also on the specific plan. The free, self-hosted Community Edition is incredibly powerful, but it lacks some of the advanced features found in the paid Cloud and Enterprise plans.
| Feature | n8n Cloud (Starter/Pro) | n8n Self-Hosted (Community) | n8n Self-Hosted (Enterprise) |
|---|---|---|---|
| Core Automation Engine | ✅ Yes | ✅ Yes | ✅ Yes |
| Unlimited Workflow Executions | ❌ No (Plan-based) | ✅ Yes | ✅ Yes |
| Server Setup & Maintenance | Handled by n8n | ❌ Your Responsibility | ❌ Your Responsibility |
| Data Sovereignty | Hosted in EU | ✅ Full Control | ✅ Full Control |
| Collaboration & User Roles | ✅ Yes (Pro Plan) | ❌ No | ✅ Yes |
| Global Variables | ✅ Yes (Pro Plan) | ❌ No | ✅ Yes |
| SSO, SAML & LDAP | ❌ No | ❌ No | ✅ Yes |
| Version Control using Git | ❌ No | ❌ No | ✅ Yes |
| Execution Search & Log Streaming | ✅ Yes (Pro Plan) | ❌ No | ✅ Yes |
A Real-World Scenario: Two Paths
Let’s make this tangible.
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Persona 1: Sarah, the Marketing Freelancer. Sarah needs to automate client reports from Google Analytics and post updates to social media. She’s great at marketing but gets nervous editing configuration files. For her, n8n Cloud is the perfect choice. She can get started with the free trial, and the affordable Starter plan has more than enough power for her needs without any technical headaches.
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Persona 2: David, the DevOps Engineer at a Health Tech Startup. David’s company handles sensitive patient data. Their compliance policy is crystal clear: no patient-adjacent data can be processed by a third-party service. David’s team is comfortable with AWS and Docker. For them, n8n Local (Self-Hosted) is the only option. They’ll start with the Community Edition and later upgrade to the Enterprise plan to integrate with their company’s Okta SSO and use Git for versioning their critical workflows.
Your Final Checklist
Still unsure? Ask yourself these questions:
- Am I comfortable managing a server and using Docker? If the answer is a hard no, n8n Cloud is your friend.
- Where does my automation data need to live? If it absolutely must stay on your own servers, self-hosting is the way.
- What’s my real budget? Factor in both subscription fees (for Cloud) and server hosting plus your own time (for Local).
- Do I need enterprise features like SSO or Git integration? If yes, you’re looking at either a future migration or starting with the n8n Enterprise plan.
Ultimately, there’s no bad choice here. Both n8n Local and Cloud provide access to the same incredible, flexible automation engine. The best deployment is simply the one that aligns with your skills, your resources, and your goals.
