n8n: Flexible Open-Source Platform for Business Process Automation 2026
- Lucas
- 3 hours ago
- 6 min read
With n8n, a new era of business process automation will begin in 2026. The platform combines open-source freedom with over a thousand connectors/APIs and can be operated in the cloud or on-premise, depending on your requirements.
Due to the US Cloud Act, many companies, especially in Europe, turn away from US providers and now rely on n8n.
Increasingly more IT managers are choosing n8n, and not just for strategic reasons: Compared to Microsoft Power Automate, n8n scores points with faster development, flexible integration, and native support for Python and JavaScript code. We've tested the solution for you and report on whether you should consider switching.
Contents
Reasons for switching to n8n
We surveyed over 100 IT managers from our network to understand the current challenges facing European companies and how n8n fits into these developments. The responses were overwhelmingly consistent:
Economic uncertainty shifts focus to efficiency improvements
The US Cloud Act and geopolitical risks are increasing the need for software sovereignty (especially independence from US software)
Common RPA/Workflow tools are limited in connectors/APIs and difficult to maintain
Pressure to implement AI whilst lacking an open, LLM-vendor-independent platform
Cloud costs are constantly rising thus switching to local hosting is often considered
Common RPA tools are always cloud-based (therefore eliminating the need for local hosting)
Even though many companies still rely on Microsoft Power Automate due to its deep integration with Microsoft tools, it's increasingly reaching its limits. High cloud costs, limited flexibility, and dependence on the Microsoft ecosystem result in many IT managers rethink their approach. This is precisely where n8n comes in, as it offers a modern solution for all the aforementioned challenges.
What is n8n?
n8n is a no-code tool for automating workflows. Its intuitive user interface allows you to connect functions from various software solutions – all without programming.
A simple example: Instead of manually creating a calendar block after each new entry in an Excel list, n8n can react automatically. The workflow detects when a new row is added, reads the name, and automatically creates the corresponding appointment in Outlook.
Scaling this principle to multiple systems – such as CRM, ERP, accounting or communication tools – reveals its full potential: n8n automates recurring tasks across system boundaries, thus creating efficiency in all areas of the company.
Thus, n8n has the potential to transform business processes by automating repetitive and manual tasks.
The HTTP Request Node acts as a "Swiss Army knife" and enables flexible API integrations without code.
The visual interface allows you to create workflows via drag-and-drop: A trigger (e.g., incoming email, schedule or event) initiates a series of actions such as data transfer, notification or document processing.
Self-hosting allows companies to retain full control over their sensitive data and avoids vendor lock-in like alternative solutions (e.g., Microsoft Power Automate).
n8n's hosting options
n8n offers flexible deployment options: self-hosted for complete control or cloud-based for simplicity and rapid deployment. As mentioned, n8n is particularly appealing to IT managers who want to make their digital infrastructure more independent without sacrificing powerful automation. n8n provides a European, data-secure alternative to US solutions while simultaneously enabling high efficiency in process digitization.
Self-hosting
n8n can be installed on your own hardware, a server, or a VPS. As an open-source tool, it enables complete data sovereignty - crucial for companies with sensitive information or compliance requirements. Installation is usually done via Docker. It is resource-efficient (it even runs on a Raspberry Pi), and incurs no monthly license fees. A VPS with 2 GB of RAM and 4 GB of SSD storage is sufficient for typical workflows.
Managed Hosting & n8n Cloud
Alternatively, you can run n8n as a managed VPS (e.g., via Hostinger with pre-installed n8n) or via the official n8n Cloud . Managed hosting reduces setup and maintenance effort, while the n8n Cloud, with its Trial, Starter, and Pro plans, is particularly convenient. Cloud users also receive exclusive access to new features such as the AI Workflow Builder, which generates workflows via voice input. This means n8n offers complete freedom of choice: from cost-efficient, self-managed hosting to a scalable, managed cloud environment.
What makes n8n so special?
With n8n, you can create automations (workflows) between different software solutions using drag-and-drop, without extensive programming. It offers a wide selection of APIs (interfaces) to almost all software providers.
In n8n, you can create workflows , which are chains of process steps designed to run sequentially. This allows tasks that were previously performed manually to be automated and run in the background. This is particularly interesting for businesses. Every department in a company has processes that are still largely manual and involve various applications. For example, employees export CSV files, edit them, save them, and send them. These kinds of steps are classic examples of automated workflows that can be created and executed with n8n.
Companies that identify and automate these manual processes early enough can thus gain a real competitive advantage: they then require less staff and can respond more quickly to market changes or customer requests.
Collaboration between n8n and the Model Context Protocol (MCP)
The integration of n8n with the Model Context Protocol (MCP) enables the development of intelligent, AI-driven automation processes. MCP was created to provide a unified interface between large language models (LLMs) and external tools – a bridge that significantly extends traditional automation.
The Model Context Protocol (MCP)
MCP standardizes communication between AI agents and applications. This allows different LLMs (e.g., Claude, GPT, Gemini) to be exchanged without having to rewrite workflows. Before MCP was released as a project by Anthropic, complex interfaces had to be developed. Each model had its own logic. MCP is now a unified framework that simplifies access—essentially the USB stick of the AI age.
It consists of hosts (LLM apps), clients (connections), and servers that provide tools or data. The goal is to equip AI systems with dynamic access to real-world data and functions, going beyond mere text processing.
The two roles of n8n in the MCP architecture
n8n as an MCP server: n8n provides its automation workflows as "tools" for AI agents. A host like Claude Desktop can thus directly access n8n flows and trigger actions (e.g., data queries, API calls, analyses). This connection is established via the MCP server trigger and can be secured with authentication.
n8n as an MCP client: In this role, n8n itself accesses AI functions of an MCP server, such as text analysis, data interpretation, or decision support. This allows AI capabilities to be directly integrated into automation workflows.
This two-way integration makes n8n a platform where classic process automation and modern AI intelligence merge.
What are some application examples for n8n in companies?
n8n is used in companies to digitize and accelerate manual business processes. Therefore, the first step is to identify the business processes that are 1) manual, 2) time-consuming, or 3) not digital. These are usually found in administrative units. Some examples of n8n business use cases are:
Automated reading and filing of invoices
AI screening of customer inquiries
Automated master data cleansing with AI agents
Automatic creation of presentations from reporting data
Automatic upload of documents to the DMS after approval
Automated tagging of emails by content or customer
Automatic creation of offers
Creation of weekly sales reports from CRM data
Automatic ticket creation
Merging data from different systems
The possibilities are almost endless due to the large number of interfaces and the rapid implementation. Generally speaking, all rule-based business processes can be easily automated with n8n. If you're unsure how to identify use cases, read our article on identifying use cases in the field of AI .
n8n vs Microsoft PowerAutomate
n8n is the more flexible and cost-effective alternative to Power Automate. It combines modern technology with ease of use.
But why is n8n better than PowerAutomate?
n8n offers a variety of features that PowerAutomate does not:
Freely select your hosting option (local or cloud)
Python and JavaScript can be integrated directly
Lower running costs
Workflows can be tests step by step (instead of having to run the whole workflow)
Fast, modern UI
More APIs and connectors compared to PowerAutomate
Support for any AI model (not just ChatGPT or Co-Pilot)
Native tools for AI and agent integrations
Owned by a German company (GDPR-compliant workflows)
These advantages, and many more, are driving the international success of Berlin-based n8n GmbH. A growing number of companies are migrating their workflows to n8n, as its benefits and flexibility have convinced many IT managers.