Back to Blog
self-hosting
VPS
cloud
homelab
proxmox
Cloud vs. Couch: Is VPS the Better Way to Self-Host in 2025?
October 25, 2025
9 min read
There's a quiet shift happening in the self-hosting community. The hum of servers tucked behind couches and desks is starting to fade as more hobbyists and power users move their workloads to the cloud—specifically to Virtual Private Servers (VPS). And no, it's not just about chasing uptime or avoiding the occasional power outage. In 2025, VPS-based self-hosting isn't just a convenience—it might be the smarter choice in the debate between home server vs. public cloud.
So, what's behind the movement from homespun hardware to scalable cloud-based setups? And is giving up your home server for a €14/month VPS stack actually worth it?
Let's unpack the pros, the caveats, and what real users are doing to strike the right balance.
## Why People Are Moving Off the Couch
Home servers have long been a badge of honor. A perfectly tuned box in your living room running Jellyfin, Nextcloud, or your own VPN feels like a personal fortress of freedom. But it's also a commitment—one that increasingly feels outdated in a world where public cloud options are affordable, reliable, and incredibly capable.
One user shared their entire VPS-based self-hosting setup costing just €14 per month, spread across three instances:
- A dedicated opnSense firewall VPS with public IPv4
- A Proxmox Backup Server VPS for snapshots and sync
- A primary Proxmox host with encrypted storage, unlocked via dropbear
These VPS instances are connected over internal networks, with an added Hetzner Storagebox (€12 for 5TB) mounted for Syncthing and backups. The whole thing runs web scrapers, encrypted productivity apps, and even privacy-respecting DNS filters—replacing nearly all of what used to run on their home server.
## The Case for Public Cloud Self-Hosting
In the home server vs. public cloud debate, here's where VPS solutions are pulling ahead:
### Better Redundancy and Uptime
Residential internet just doesn't hold a candle to datacenter-grade bandwidth. With a home server, everything—your router, power supply, ISP—becomes a potential single point of failure. A VPS gives you reliable uptime, geo-redundancy, and automatic failover. You're not babysitting your infrastructure; it just works.
### Lower Power Consumption and Operating Costs
Many users have realized their cloud bill is cheaper than their electric bill. One person replaced a €90-150/month home setup with a €36/month VPS solution, dropping power use and hardware headaches. If you don't need 20TB of media, VPS wins the efficiency war hands down.
### Flexibility and Scaling
A public cloud VPS lets you scale vertically or horizontally with ease. Need more CPU? RAM? A whole separate node for a sensitive service like a password manager? You can do that in minutes. Compare that to shopping for more RAM on eBay and waiting three days for shipping.
### Improved Security Practices
Yes, putting sensitive data in someone else's datacenter raises eyebrows. But modern tools—Vaultwarden, Syncthing with encrypted shares, E2EE calendar and productivity apps—have made privacy in the cloud much more realistic. Combine that with VPN tunnels, zero-trust proxies, and firewalls, and you're not just secure—you're portable.
## Where Home Servers Still Win
That doesn't mean public cloud self-hosting is perfect. Here's why the home server still has a role:
### Full Control and Data Ownership
With a home server, you own everything—the drives, the network, the access. No shared hosts. No mysterious datacenter techs. No shifting terms of service. For the paranoid (or just cautious), that peace of mind is priceless.
### Unlimited Bandwidth and Storage
Running a home media server or syncing massive photo libraries? Even with generous cloud storage like Hetzner's 5TB for €12, nothing beats plugging in a cheap 8TB drive at home. And there's no soft bandwidth caps when it's your router doing the talking.
### Low-Latency, High-Speed Access
Latency-sensitive apps—gaming servers, smart home controllers, IP cameras—just run better on local networks. Period.
## The Hybrid Sweet Spot
For most, the best setup isn't choosing between home server vs. public cloud—it's doing both.
- **VPS for public-facing services** (reverse proxies, password managers, uptime monitoring)
- **Home servers for bulk storage and internal tools**
- **Tailscale or WireGuard** to mesh it all together in one secure private network
One user runs a full Kubernetes cluster split between three VPS nodes and a mini-PC at home. If the local node dies, services redeploy to the VPS automatically. Another set up Cloudflare tunnels to access photos on Immich without paying for a static IP—because their ISP doesn't offer one at all.
This kind of split-stack flexibility was once reserved for enterprise dev teams. Now, it's something you can build with €10, some Docker skills, and a weekend.
## Privacy, Trust, and Real Talk
There's a healthy amount of skepticism about putting personal data in the cloud—and it's deserved. But the reality is: if you encrypt everything, use zero-trust architecture, and keep your secrets out of plain text, a VPS can be just as safe (and often safer) than a dusty old PC under your TV.
As one user put it:
> "I wouldn't trust a sketchy one-person VPS provider. But with a reputable company like Hetzner, I'm more worried about my Nextcloud misconfig than their admins sniffing RAM."
Of course, there's still a hard truth here: if you don't control the hardware, you can't fully control the risk. But for many, the trade-off is now worth it—especially when privacy-preserving tools are built into the stack from day one.
## So, Is VPS the Better Way to Self-Host?
If your priorities are uptime, simplicity, and cost-efficiency, then yes—a public cloud VPS is a better way to self-host in 2025.
But if you're pushing petabytes of storage, running latency-sensitive workloads, or simply love the idea of full physical ownership, the home server still has its place.
For most, the future isn't about picking sides. It's about blending the best of both worlds—with encrypted apps, smart tunnels, and modular deployments that adapt to your needs, budget, and lifestyle.
The real win? You're still self-hosting. You're still in control. Whether that happens in a datacenter or under your couch is just the implementation detail.
Keep Exploring
Six Grand, Twelve Drives, and One Dream: How a 200TB Server Became a Portfolio
One engineer built a 200TB Proxmox and TrueNAS system from scratch—not for work, but as proof of skill. This is the story of how a homelab became a living resume.
I’m a Machinist, Not IT: The Raw, Frustrated, Brilliant Reality of Wiring CNCs Into a Proxmox Server
A real-world shop-floor story of moving CNC workflows off a single fragile PC by using Proxmox, practical network design, and low-friction file transfer choices that actually work.
Someone Built the Traefik Provider Proxmox Users Have Been Waiting For
A new Traefik provider plugin brings Docker-style automatic service discovery to Proxmox VMs and containers, eliminating manual routing config and changing how homelabs handle reverse proxy setup.
From NAS Access to Watching Hockey Abroad: What People Actually Use Tailscale For
Beyond the marketing, Tailscale solves real problems: NAS access from anywhere, bypassing sports blackouts, secure media streaming, and connecting homelabs without port forwarding headaches.