Self-Hosted vs Managed Databases
When raw compute beats managed convenience, and what ownership really costs.
Executive Summary & Quick Answer
Managed database services sell convenience at a multiple of raw compute cost. Self-hosting PostgreSQL or MySQL on a well-sized cloud server recovers most of that margin in exchange for operational ownership.
Reviewed
2026-08-22
The managed markup
A managed instance with the same vCPU and RAM as a commodity VM routinely costs 2-4x more once storage, backups, and high availability are itemized. The premium purchases automation, not hardware.
What self-hosting really requires
You own provisioning, monitoring, backup verification, failover drills, and security patching. Automated WAL archiving to object storage plus tested restores cover most small-team risk profiles.
RAM is the database spec that matters
Database performance tracks the working set held in memory. Size RAM generously before adding vCPUs; memory-optimized instances are usually the better spend.
A middle path
Many teams self-host primary databases on NVMe-backed VPS providers and keep managed services for exotic needs (global replication, serverless scaling). Compare both options against actual requirements rather than defaults.
Key takeaways
- Managed databases commonly cost 2-4x equivalent raw compute.
- Self-hosting trades money for operational responsibility.
- Prioritize RAM and NVMe when sizing database servers.
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