n8n

Instead of writing code in a single application, you build your automation visually on a canvas: each work step is a node, and the nodes are chained together with connecting lines to form a workflow. n8n deliberately positions itself between pure no-code tools and classic custom development. You get the speed of a visual interface but can insert real JavaScript or Python code at any point if the ready-made building blocks are not sufficient.

The decisive difference from many comparable services lies in the licence and operating model: n8n can be self-hosted and treats data sovereignty not as a premium feature but as the standard case. For mid-sized companies that have to process personal data in compliance with the GDPR, this is a central argument.

What makes n8n what it is

n8n is a fair-code project. Fair code is not a synonym for classic open source but describes a model in which the source code can be viewed openly and you may operate, adapt and use the software commercially internally free of charge. The legal basis is the Sustainable Use License. It allows you to do practically everything you want to do within your own company, but restricts you from reselling n8n as a hosted competing service. n8n thus occupies a middle position between fully permissive open source and purely proprietary SaaS.

Technically, n8n is a Node.js application that you run as a Docker container, via npm or in a cloud environment. Workflows are stored as JSON structures, which makes them versionable and transferable. You can export a workflow from one environment and import it again into another, which considerably simplifies testing, staging and deployment.

Self-hosted versus n8n Cloud

n8n is available in two basic forms of operation, and the choice shapes costs, effort and data sovereignty alike:

• Self-hosted (Community Edition): you run n8n on your own infrastructure, for example on a VPS, a server in your own data centre or in a private cloud. The software itself is free of charge; your only ongoing costs are hosting and maintenance. All data stays in your environment and never leaves it. This is the highest level of control and data sovereignty.
• n8n Cloud: n8n runs the instance for you as a hosted service, including updates, backups and scaling. You save yourself the operating effort but give up part of the control. Consumption-based plans apply to the cloud, based on executions.

An important difference in billing: n8n counts per execution, i.e. per complete workflow run, regardless of how many nodes the workflow contains. Tools such as Zapier, on the other hand, bill per individual step (task). With long, multi-step workflows, this difference can make costs diverge considerably.

The most important types of node

A workflow in n8n always consists of at least one trigger and any number of further nodes. The nodes can be roughly divided into three groups.

Triggers: what starts the workflow

Trigger nodes are at the beginning and determine when a workflow runs. The most important are:

• Schedule trigger: starts the workflow on a schedule at fixed intervals or at specific times, comparable to a cron job under Unix. Typical for nightly data synchronisation or weekly reports.
• Webhook trigger: provides a URL at which n8n listens for incoming HTTP requests. As soon as an external system sends data to this address, the workflow starts. This lets you react in real time to events from other applications.
• Error trigger: is triggered when another workflow fails. This lets you build central error handling that alerts you, for example by message, as soon as something gets stuck somewhere.
• App-specific triggers: many integrations bring their own triggers, such as "new email received" or "new record in the CRM".

Logic: how the workflow decides

Between trigger and destination, logic nodes ensure that your process does not just run stubbornly straight ahead. The IF node branches into two paths based on conditions, the Switch node into several. With the Merge node, you bring separate strands together again; with filter nodes, you remove records that should not be processed further. If the ready-made building blocks are not enough, the Code node comes into play: here you write your own JavaScript or Python, transform data freely and integrate additional packages if required. It is precisely this combination of visual logic and real code that makes n8n attractive for technical teams.

App nodes and HTTP Request

Most of the work is done by the app nodes. n8n comes with several hundred ready-made integrations, from CRM and marketing systems through databases, messengers and cloud storage to AI services. For any service without its own node, there is the universal HTTP Request node: with it, you can address basically any REST API and thus integrate practically any system that provides an interface. This openness is one of the reasons why n8n also works where standard tools fail because of missing integrations.

A concrete example: webhook → IF → Slack

To make the structure tangible, here is a real, practical workflow for lead notification:

[Webhook trigger]      receives the contact form submitted on the website
        │
        ▼
[IF: budget > €10,000]  checks the project budget entered
        │
   ┌────┴─────┐
   ▼          ▼
[Slack:     [Google Sheets:
 sales team]  lead list]
 "Hot         simple
  lead!"      logging

When someone fills in the contact form, the website sends the data via HTTP to the webhook. The IF node checks the budget field: if it is over 10,000 euros, n8n immediately sends a message to the sales team's Slack channel so that nobody overlooks a high-value lead. All other enquiries land quietly in a Google Sheets table. You can build such routing in n8n in a good half hour, and it then runs without any further intervention.

Distinction from Zapier and Make

n8n, Zapier and Make pursue the same goal but differ considerably in philosophy and operation. The following overview summarises the key differences.

The key points for a decision: Zapier is a pure cloud service without self-hosting; all data is processed on US infrastructure, which can make GDPR requirements more difficult. Make offers EU hosting and is often attractively priced at medium volumes. n8n plays to its strengths wherever data sovereignty, self-hosting and code flexibility count, and becomes economically particularly interesting at high execution volumes thanks to the execution model and free self-hosted operation. There is no blanket recommendation; the right choice depends on data protection requirements, technical depth and volume.

Typical use cases at mid-sized companies

n8n is particularly useful at the seams between systems that nobody else serves. Common scenarios are:

• Notification and alerting: automatic messages as soon as a server fails, an order above a threshold comes in or a contract expires, directly in Slack, Teams or by email.
• Lead routing: enquiries from forms or ads are evaluated, enriched and distributed to the right person or into the CRM, without manual sorting.
• Invoice and document workflows: incoming invoices are read, checked and handed over to accounting or a DMS.
• Data synchronisation: customer, product or order data is reconciled between shop, ERP, CRM and accounting so that the same status applies everywhere.

With the emergence of AI functions, another area has been added: n8n can be connected to language models and vector databases and thus becomes the control centre for chatbots, automatic classification or AI-supported reply suggestions. If you want to delve deeper into such automations, our process automation & AI workflows service helps you set up the processes properly. Our AI consulting gives an overview of our entire range of AI services. You can find concrete, fully calculated examples in our article on n8n at mid-sized companies and in the step-by-step guide to alerting with n8n.

Limits of n8n

n8n is not a cure-all. Self-hosted operation requires technical know-how: you have to install updates, ensure backups and think about scaling as volume increases. For very simple one-step automations, the effort is often higher than with pure no-code services. In addition, n8n does not replace full application development: as soon as complex business logic, transactional security or demanding user interfaces are required, tailor-made software is the better choice. n8n shines in the space in between, connecting, orchestrating and automating existing systems. Anyone who respects this focus gets the most out of it.

You can find more technical details and the current list of integrations in the official n8n documentation.

Frequently asked questions

Is n8n really free?

The self-hosted Community Edition can be used free of charge, including commercially within your own company. The only costs are for hosting and maintenance. The cloud version operated by n8n and some enterprise functions are chargeable.

Do I need programming skills for n8n?

No; for many standard automations, the visual nodes are enough without a single line of code. Programming skills help, however, if you want to transform data freely or implement complex logic in the code node. n8n is popular precisely because it combines both worlds.

How does n8n differ from Zapier?

The biggest difference is self-hosting: n8n runs on your own infrastructure, so your data never leaves your organisation. Zapier is a pure cloud service on US servers. In addition, n8n bills per workflow execution and Zapier per individual step, and n8n allows more custom code.

Can n8n be used in compliance with the GDPR?

In self-hosted operation, you have full control over where and how data is processed, which makes GDPR-compliant use easier. Actual compliance always depends on your configuration, the connected services and the data processed.

Who is n8n particularly worthwhile for?

For mid-sized companies with their own or supported technical know-how that want to connect several systems and value data sovereignty, flexibility and predictable costs. With many or multi-step automations, n8n plays to its strengths particularly clearly. If the know-how is lacking in your own team, an AI agency such as nextlevels takes over the set-up, hosting and operation of the workflows.