Self-hosted vs Cloud: Where Does Your AI Assistant Run Best?
Compare self-hosted and cloud-hosted AI assistants on cost, privacy, control, and scalability. Discover which hosting model best fits your organization.
Self-hosted
Your AI assistant runs on your own server (VPS or dedicated), with full control over data, configuration, and uptime.
Cloud-hosted (SaaS)
Your AI assistant runs on third-party servers, managed by the vendor with limited configuration options.
Comparison table
| Feature | Self-hosted | Cloud-hosted (SaaS) |
|---|---|---|
| Data control | Full ownership — data on your own server | Data with third party — dependent on their privacy policy |
| Cost | Low predictable server costs (from ~€5/month) | Subscription costs per user/message, expensive at scale |
| Customization | Full — access to all configuration and code | Limited to available options in the dashboard |
| Maintenance | Some responsibility for updates and uptime | Fully managed by the provider |
| GDPR compliance | Simple — choose an EU server and you comply | Depends on where the provider processes data |
Verdict
Self-hosted offers more control, lower costs at scale, and better privacy. Cloud-hosted is easier to start but more expensive as you grow. For businesses taking GDPR compliance seriously, self-hosted is often the only responsible choice.
Our recommendation
OpenClaw Installeren combines the best of both worlds: the control of self-hosted with the convenience of a managed service. We set everything up for you on a Europese cloud VPS in Europe, so you enjoy the benefits of self-hosting without the technical complexity.
Frequently asked questions
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