Skip to content

Automation

What is n8n? The automation platform you can host yourself

What n8n is, explained for managers: how workflows run, what the fair-code licence means, when self-hosting is worth it, what it can do with AI and where its limits are.

The WEB-AZ team7 min read

Share

What it is
A workflow automation platform with a visual editor, ready-made integrations and the option to add code.
Type and licence
Fair-code, under the Sustainable Use License; available as a cloud service or self-hosted. Some features require an enterprise licence.
Good for
Companies with requirements about where data is stored, workflows involving APIs and code, and automations that include AI steps.
Less suited to
Teams with no technical support that only want a few simple workflows between popular apps.
Alternatives
Make, Zapier, custom-built integrations.
How we use it
For process automation, integrations between systems, and workflows with AI steps and human approval.

n8n is a workflow automation platform where you connect your company's apps (CRM, email, forms, online store, databases) and make them work together according to rules you set. Unlike most similar platforms, n8n can also be installed on your own server, and you can add code directly into a workflow when needed. In short, n8n is a visual automation tool that gives you more technical control and more control over your data.

The name is usually pronounced “n-eight-n” and comes from “nodemation”, a blend of “node” (the basic building block of every workflow) and “automation”. The platform is used both by technical teams and by companies that want to automate repetitive processes without building an application from scratch.

In short

n8n links apps together through visual workflows made of nodes. You can use it in the cloud or on your own server, under a fair-code licence. It is powerful for integrations with APIs, code and AI, but it needs someone to set it up and maintain it properly.

How n8n works: triggers, nodes and workflows

An n8n workflow is built in a visual editor by linking nodes together. Each node does one thing: it receives data, transforms it or passes it on.

  1. The trigger starts the workflow: a completed form, an incoming email, a new order, a fixed time of day or an external call (webhook).
  2. Action nodes take the data and do something with it: create a contact in the CRM, add a row to a spreadsheet, send a message.
  3. Logic nodes decide the route: “if” conditions, branches, merging data from several sources.
  4. Code or HTTP request nodes handle special cases where no ready-made integration exists.
  5. Every run is kept in the history, so you can see what data passed through the workflow and where any problem occurred.

A conceptual example: a customer fills in the quote request form on your website. n8n takes the data, checks whether the company already exists in the CRM, creates or updates the record, notifies the salesperson in chat and schedules a confirmation email. What a person used to do by hand in a few minutes, for every enquiry, happens automatically.

The n8n licence: what “fair-code” means

n8n is not open source in the strict sense of the term; it uses a model called “fair-code”, through the Sustainable Use License. The source code is public, and the platform can be used and modified for a business's internal needs, including self-hosted.

The restrictions apply mainly when you want to offer n8n to others as a commercial product or service, for example selling access to an automation platform built on it. Some advanced features useful to large companies (such as certain user management and single sign-on options) are available only with an enterprise licence. If you have an unusual use case, read the licence text on the official website.

n8n Cloud or self-hosted n8n?

n8n can be used in two ways, and the choice between them matters more than it seems.

  • n8n Cloud: the platform runs on n8n's infrastructure. There is nothing to install, updates are handled by the provider, and the cost is based on a subscription plan.
  • Self-hosted: you install n8n on a server of your choice, usually with Docker (a standard way to package and run applications). You choose where the data lives, for example in an EU data centre, and you can connect n8n to internal systems that are not exposed to the internet.

Watch out

On a self-hosted n8n, security is your responsibility: protected access, up-to-date versions, backups, monitoring and safe storage of the access keys to your other apps. A forgotten server running an old version is a real risk, because n8n holds access to many of the company's systems.

How do you choose? If the company has no technical lead or provider to manage the server, start with n8n Cloud: workflows built there can usually be exported and imported later into your own instance. If you have clear requirements about where data is stored, internal systems that need connecting or a high volume of executions, the self-hosted option deserves serious consideration, together with a maintenance plan.

Which companies n8n suits

  • Companies that handle sensitive data and want to decide exactly where it is processed.
  • Teams that already have an ERP, a database or an internal application with an API and want to link them to their other tools.
  • Companies that want to add AI steps to existing processes, with control over each stage.
  • Companies working with a technical provider who can build, document and maintain the workflows.

If all you need is to connect two or three popular apps, with no sensitive data and no technical support, a simpler platform may be more practical, at least to begin with.

What n8n can do with AI

n8n includes dedicated nodes for artificial intelligence: connections to large language models (LLMs) from various providers, AI agents that can use tools, conversation memory and connections to vector databases, used in assistants that answer from the company's documents. The specific features change often, so check the current documentation.

  • Classifying incoming emails or requests and routing them to the right person.
  • Extracting data from free text, for example a quote request, into structured fields.
  • Summarising long conversations or documents for the team.
  • Drafting a proposed reply, which a person approves before it is sent.

n8n's advantage here is that the AI step sits in the same workflow as the rest of the logic: you can check the result with clear rules, pause the workflow for human approval and keep a history of decisions. The AI model can still make mistakes, so actions that affect customers or money should not be left fully automatic.

How much does n8n cost?

We do not give figures, because plans change; the official pricing page is the right source. What is worth knowing is how the cost is made up. On n8n Cloud, plans are tied mainly to the number of workflow executions, and one execution means one complete run of a workflow, however many steps it has. With the self-hosted option you do not pay per execution, but you pay for the server, any enterprise licence and, above all, the time of whoever manages it.

Beyond the platform, the real cost of an automation includes analysing the process, building and testing the workflow, documenting it and maintaining it over time, as the connected apps change their interfaces or rules.

n8n's limits and when it isn't the right fit

  • The learning curve is steeper than with Zapier. Working with JSON data and expressions is not intuitive for everyone.
  • The catalogue of ready-made integrations is smaller than on some competing platforms; for missing apps you use API calls, which require technical knowledge.
  • The self-hosted option brings administration responsibilities that a small company can underestimate.
  • Very complex workflows can become hard to follow if they are not organised and documented from the start.
  • For a complete business application, with its own interface and extensive logic, an automation platform does not replace custom-built software.

Practical tip

For each workflow, write a short document noting what it does, which apps it uses, who receives error alerts and who can change it. Without this documentation, workflows become “black boxes” that no one dares to touch.

n8n compared with Make and Zapier

Make and Zapier are cloud-only services, designed primarily for non-technical users, with Zapier the easiest to get started with and Make the richest visually. n8n stands out for its self-hosting option, the ability to write code directly in a workflow and its execution-based cost model. If your team has no technical support and only a few simple workflows, Zapier or Make may be more practical choices. We cover the comparison in detail in a separate guide on n8n, Make and Zapier.

How we use n8n at WEB-AZ

We work with n8n when a process needs API integrations, control over where data is stored, or AI steps combined with human approval. We start with a single well-defined process, build it, test it with real data and document it, then agree together who maintains it. If we are not convinced n8n is the right option for your situation, we tell you and suggest the alternative.

Found it useful? Pass it on

Frequently asked questions

  1. What is n8n, in short?

    n8n is a workflow automation platform where you connect apps through visual nodes. It can be used in the cloud or installed on your own server, and it lets you add code where standard integrations fall short.

  2. Is n8n open source?

    Not in the strict sense. n8n uses a fair-code model, through the Sustainable Use License: the source code is public and can be used for a business's internal needs, but there are restrictions on offering it to others as a commercial service.

  3. Can I use n8n for free?

    The self-hosted version can be used for internal needs without a subscription, under the terms of the licence, but you pay for the server and the administration time. n8n Cloud and the enterprise features are paid; check the official page for the current plans.

  4. Do I need programming skills to use n8n?

    For simple workflows, not necessarily, because the editor is visual. For API integrations, more complex data processing, self-hosting and security, support from someone with technical experience is recommended.

  5. Is n8n a good choice for GDPR?

    The self-hosted version lets you choose where data is processed, which helps with compliance. However, GDPR is not solved by server location alone: it also matters what data passes through the workflows, how long the execution history is kept and which other providers, including AI providers, receive the data.

Can’t find the answer? Write to us and we’ll reply directly.

Have an idea, a process that slows you down or an opportunity you want to explore?

Tell us what you want to build or what you want to simplify. We look at the situation and suggest a suitable direction.

Project type *
Add details, budget and timeline (optional)

* required fields. We don't send newsletters.