SaaS vs. Self-Hosting: What's Actually Worth It?
The Hidden Costs of SaaS
What starts as “just $29/month” adds up fast: per user, per feature, per integration. A typical startup easily pays $500 to $1,000 monthly for CRM, analytics, newsletter, and project management alone.
The Self-Hosting Alternative
A Hetzner VPS starting at around $16/month can run the same tools. Open-source alternatives like Twenty (CRM), Plausible (analytics), and Listmonk (newsletter) are feature-complete and free of license fees.
The Real Comparison
| Tool Category | SaaS (per month) | Self-Hosted |
|---|---|---|
| CRM | $25-300 | $0 (Twenty) |
| Analytics | $9-50 | $0 (Plausible) |
| Newsletter | $20-100 | $0 (Listmonk) |
| Automation | $20-100 | $0 (n8n) |
| Server | - | from ~$16 |
When Self-Hosting Makes Sense
Self-hosting pays off especially when you need GDPR compliance, use more than 3 SaaS tools, or want to reduce costs long-term. The initial setup effort is higher, but ongoing costs are significantly lower.
Bottom Line
For most businesses running more than a handful of SaaS subscriptions, self-hosting is the more economical choice. The key: professional setup and maintenance so you can focus on your core business.