n8n (pronounced “n-eight-n”) is an automation tool that helps businesses create workflows tailored to their needs while keeping full control over their data. Unlike traditional SaaS tools, n8n is self-hosted, meaning you run it on your own server or VPS. This approach eliminates high subscription costs, allows for unlimited customization, and ensures data privacy.
Why n8n Stands Out:
- Cost-Effective: No per-task fees – just hosting costs, starting as low as $5–$20/month.
- Customizable: Use its visual editor, custom JavaScript, or API integrations to design workflows.
- Data Control: Your data stays on your infrastructure, reducing privacy and compliance risks.
- Flexible Hosting: Best hosted on a VPS for 24/7 availability and scalability.
Who Should Use n8n?
- Businesses managing sensitive data.
- Teams needing complex or custom workflows.
- Anyone looking to avoid escalating SaaS costs.
With over 400 integrations and open-source transparency, n8n offers a powerful alternative to traditional automation tools.
What Is n8n?
The Meaning Behind ‘n8n’
n8n is pronounced “n-eight-n” and stands for “nodemation” (node + automation). The ‘8’ represents the eight letters connecting ‘node’ and ‘automation,’ highlighting its modular and flexible design.
This name perfectly reflects n8n’s core feature: its node-based architecture. Unlike traditional automation tools that lock you into rigid, linear workflows, n8n treats every action, trigger, or decision as a separate node. These nodes can be connected, rearranged, and customized to match your specific needs.
The idea behind “nodemation” mirrors how businesses function today – through interconnected, adaptable processes. Each node in n8n represents a distinct task, whether it’s pulling data from an API, processing that data, or triggering an action in another tool. This approach allows you to visually design workflows that fit your unique requirements.
How n8n Works
n8n uses a visual workflow editor that makes automation straightforward with its drag-and-drop interface. Instead of diving into complex code or navigating endless configuration screens, you simply connect nodes on a visual canvas to build your workflows.
Here’s how it works:
- Trigger nodes kick off workflows, whether through real-time events like webhooks or predefined schedules using cron jobs.
- Action nodes perform tasks, such as sending emails or updating databases.
- Logic nodes manage conditions, enabling dynamic workflows that adapt to different scenarios.
With this setup, n8n handles both real-time and scheduled automations effortlessly. For instance, you can create workflows that instantly respond to customer inquiries or set up automations to sync data at specific intervals.
n8n integrates with over 400 popular business applications, making it easy to connect your favorite tools. For advanced users, it offers the ability to write custom JavaScript code or import npm packages directly into workflows. This means developers can create highly tailored automations while non-technical users still benefit from the intuitive visual editor.
Data moves through n8n workflows in JSON format, which allows each node to process and transform information from the previous one. For example, a workflow could take data from your CRM, launch a marketing campaign, update an analytics dashboard, and send notifications – all in one streamlined, visual process. It’s automation that’s both powerful and easy to adjust.
n8n’s Fair-Code License and User Control
What Is a Fair-Code License?
n8n’s fair-code license strikes a balance between open-source flexibility and proprietary restrictions. The source code is publicly available on GitHub, but there are specific commercial limitations in place.
Here’s how it works: You can self-host n8n for personal projects or internal business use without any licensing fees. However, if you plan to offer n8n as a paid service to others, you’ll need to obtain a commercial license from n8n’s creators. This approach ensures that while users enjoy the benefits of open-source transparency, the developers maintain a sustainable model for growth.
This licensing model provides full access to the source code, allowing for customization and thorough security reviews – something you won’t get with closed-source SaaS tools. You retain control over your deployment, tailoring n8n to your specific needs and keeping your data within your infrastructure. It’s a setup that not only prioritizes transparency but also delivers operational flexibility.
Benefits Over SaaS Tools
n8n’s fair-code license isn’t just about transparency – it also addresses common frustrations with SaaS platforms, such as high costs and limited control. By self-hosting n8n, you gain several key advantages that traditional SaaS tools just can’t match.
One major benefit is complete data sovereignty. When you host n8n on your own servers, your data stays under your control. This eliminates common privacy concerns and simplifies compliance with regulations, especially for businesses handling sensitive information.
The freedom to customize is another standout feature. With access to the source code, you can adapt n8n to meet your specific needs. For instance, a marketing agency could use n8n to automate client reporting by integrating data from CRMs, email platforms, and analytics tools. They can create workflows tailored to each client while avoiding recurring SaaS fees and ensuring strict data privacy.
n8n also removes vendor lock-in. You’re not at the mercy of a third-party provider’s pricing changes, policy updates, or infrastructure constraints. As your business grows or your needs evolve, you can scale your n8n setup on your terms – no arbitrary usage limits, no surprise cost hikes.
For organizations with strict security or compliance requirements, n8n’s transparency is invaluable. You can audit the entire codebase to verify security practices, ensure proper data handling, and even add extra security measures if needed. This level of control is simply not possible with closed-source SaaS platforms, where you’re forced to trust the provider’s claims.
Finally, n8n’s active community and development ecosystem add to its appeal. With over 1,000 templates and more than 200 integrations, the platform continues to grow and adapt based on real user feedback. Its community-driven development proves that the fair-code model can balance user needs with sustainable growth, creating a tool that evolves alongside its users.
When to Use n8n
n8n vs SaaS Tools Comparison
When deciding between n8n and traditional SaaS automation tools, it often comes down to a choice between control and convenience. Each option has its strengths, and the right choice depends on your specific needs, technical expertise, and long-term objectives.
| Feature | n8n (Self-hosted) | SaaS Tools |
|---|---|---|
| Data Control | Full control – data stays within your infrastructure | Limited – data passes through third-party servers |
| Customization | Highly flexible – supports custom JavaScript/Python and npm packages | Limited to predefined actions and triggers |
| Cost Structure | Free core software + infrastructure costs | Pricing scales with usage (per-task costs) |
| Setup Complexity | Requires technical setup and maintenance | Quick deployment, no infrastructure required |
| Scalability | Unlimited – scale based on your infrastructure | Restricted by pricing tiers and vendor limitations |
| Integration Flexibility | Over 400 integrations plus custom API connections | Large libraries but limited to vendor ecosystems |
SaaS tools are a great fit when you need quick results with minimal technical effort. They’re especially useful for small teams or businesses without IT resources, handling simple tasks like connecting Google Sheets to Slack for notifications.
On the other hand, n8n stands out when control and flexibility are priorities. If you’re managing sensitive data, need complex custom workflows, or want to avoid escalating subscription costs as your automation scales, n8n’s self-hosted approach provides both freedom and predictable expenses.
Common Use Cases for n8n
Here’s how n8n’s capabilities translate into practical advantages for organizations:
Internal Automation Workflows
n8n shines when technical teams need to connect various applications, streamline complex processes, and manage data flows with precision. Acting as an Integration Platform as a Service (iPaaS), it bridges cloud applications and internal systems through APIs. With n8n, you can combine built-in integrations with custom API connections, creating workflows that adapt to your exact needs.
Marketing Automation Workflows
For marketing teams, n8n offers cost-effective and highly customizable solutions. You can build intricate, multi-step workflows without worrying about per-execution fees. From updating spreadsheets to managing customer data, running email campaigns, and syncing CRM systems, n8n gives you the freedom to handle unique tasks. Its ability to integrate custom code allows for data transformations that would be challenging or costly on other platforms.
DevOps and Technical Operations
DevOps teams benefit from n8n’s event-driven architecture, which supports both real-time webhooks and scheduled cron jobs. Whether it’s for alerts, system monitoring, or deployment automation, n8n provides the tools to bridge internal systems, cloud services, and custom applications. This flexibility eliminates the constraints often imposed by vendor-specific tools.
Data Transformation and Integration
When dealing with complex data manipulation, n8n’s strengths come to the forefront. It enables advanced data transformations using JSON between nodes, making it ideal for organizations handling sensitive information or requiring custom processing logic. n8n’s self-hosted nature ensures compliance while allowing full control over how data is processed and integrated.
Across all these use cases, the standout benefit is long-term scalability and control. As your organization expands, n8n adapts without being held back by pricing tiers or feature restrictions. It’s a solution built to grow with you.
Conclusion: Control Your Automation with n8n
n8n takes automation to the next level by putting you in charge. It shifts the focus from costly SaaS platforms to a self-hosted solution, offering unmatched control, flexibility, and privacy.
- Control: With n8n’s fair-code license and self-hosting, you’re no longer bound by third-party pricing or restrictions. Your automation stack is entirely yours to manage.
- Customization: Thanks to its node-based design, n8n supports custom JavaScript, npm packages, and over 400 integrations. Whether you’re bridging legacy systems or designing intricate workflows with conditional logic, n8n molds to your needs without forcing you to compromise.
- Privacy: Self-hosting ensures sensitive data stays within your infrastructure. For businesses dealing with customer information, financial records, or proprietary processes, this level of data control is a game-changer.
Pairing n8n with a VPS hosting solution amplifies these benefits. With dedicated resources and always-on access, your automation runs smoothly, no matter the complexity of your workflows. Plus, VPS hosting scales effortlessly alongside your business, ensuring your infrastructure keeps pace with your growth.
Get Started with n8n on VPS.us
VPS.us provides the perfect platform to host n8n, offering enterprise-grade infrastructure starting at just $10 per month. With full root access, AlwaysOn Access features, and 24/7 expert support, you gain total control over your automation while enjoying the reliability your business demands.
