Self-hosted vs. cloud-based automation: our take

Choosing between self-hosted and cloud-based automation platforms is a common decision for teams looking to scale processes efficiently. Both approaches have clear advantages and equally real trade-offs. The right choice depends less on ideology and more on context: compliance requirements, internal capabilities, and operational priorities.

Below is a structured look at both models.

Self-hosted automation

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What it is:

Self-hosted automation means running an automation platform on your own infrastructure (or a dedicated cloud environment you fully manage). Tools like n8n are popular in this space because they offer the option to deploy and operate the system independently.

Best used when:

Self-hosting makes sense when organizations have strict regulatory, security, or data-sovereignty requirements, or when automation needs are highly customized and deeply embedded into proprietary systems. It is most suitable for teams with strong internal engineering and DevOps capabilities.

Pros:

• Full control over infrastructure, data, and deployment

• Greater flexibility for deep customization

• Can be required for specific compliance or on-premise scenarios

• No dependency on vendor cloud availability

Cons:

• Ongoing responsibility for uptime, monitoring, and backups

• Security, patching, and incident response are fully internal

• Scaling requires manual planning and execution

• Hidden costs in engineering time, maintenance, and operations

Cloud-based automation

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What it is:

Cloud-based automation platforms are hosted and operated by the vendor. Users configure workflows, integrations, and logic without managing servers or infrastructure. Tools like Make follow this model and focus on rapid implementation and ease of use.

Best used when: Cloud automation is ideal for most startups, scale-ups, and operational teams that want to automate quickly, iterate fast, and minimize operational overhead. It works especially well when speed, reliability, and low maintenance matter more than full infrastructure control.

Pros:

• No infrastructure or server maintenance

• Built-in scalability and reliability

• Automatic updates and new features

• Security and compliance handled by specialized teams

• Faster time to value with lower operational effort

Cons:

• Less control over underlying infrastructure

• Dependency on vendor availability and roadmap

• Limited customization at the infrastructure level

• Ongoing subscription costs

Comparison at a glance

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The comparison below outlines the trade-offs teams typically consider when choosing between self-hosted and cloud-based automation.

	Self-hosted automation (e.g. with n8n)	Cloud-based automation (e.g. with Make)
Primary focus	Infrastructure ownership, system control, and internal operations	Process efficiency, automation speed, and business enablement
Cost structure	Costs vary based on infrastructure, maintenance effort, and internal staffing	Subscription pricing that typically includes hosting, maintenance, and support
Maintenance	Requires continuous involvement from an internal technical team	Ongoing maintenance and updates are managed by the platform provider
Security	Security strategy and implementation are fully managed by the organization	Security measures are handled by the vendor, often aligned with industry standards and certifications
Customization depth	Deep customization possible across infrastructure, execution logic, and integrations	Customization focuses mainly on workflows and supported integrations
Scalability	Scaling depends on infrastructure design and internal capacity planning	Designed to scale automatically with changing workloads
Speed to value	Initial setup and configuration can take more time before reaching productivity	Faster onboarding, with workflows ready to be built and deployed quickly
Data residency & sovereignty	Full control over where data is stored and processed, including on-premise setups	Data location and processing are defined by the vendor’s cloud regions and policies
New features & updates	Updates are applied manually and on the organization’s own schedule	New features and improvements are rolled out automatically by the vendor

Conclusion

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Choosing between self-hosted and cloud-based automation is ultimately less about feature sets and more about strategic priorities. The decision comes down to how much effort an organization is willing and able to invest in infrastructure, security, and ongoing operations versus how strongly it wants to focus on business logic, experimentation, and process improvement.

When is self-hosted automation typically a strong fit?

• Strict compliance, regulatory, or data-residency requirements apply

• Workflows are highly specialized or deeply embedded in proprietary systems

• The organization prefers full control over infrastructure, data, and execution environment, without dependency on external vendors

• Internal engineering and DevOps teams are available to operate, secure, and evolve the system long term

When is cloud-based automation typically a strong fit?

• Speed, reliability, and rapid iteration are key priorities

• Operational overhead should be minimized as much as possible

• Teams want to focus primarily on improving processes and outcomes rather than managing infrastructure

Bottom Line: There is no universally “right” model. The optimal choice depends on regulatory constraints, technical maturity, and how closely automation should be tied to core infrastructure versus day-to-day business execution.

Need help figuring out which setup is right for you? Reach out to us!