Software · head to head
Hetzner Cloud vs Neon
The short version
- Each has a real cost: Hetzner Cloud cost-Optimized plans are shown as currently unavailable; Neon compute pricing at $0.106-$0.222/CU-hour means costs scale directly with workload, unlike fixed-price alternatives
- They diverge on capability: Hetzner Cloud covers Cloud servers, Neon covers Serverless PostgreSQL.
Where they differ
Only the attributes on which Hetzner Cloud and Neon actually diverge.
| Attribute | Hetzner Cloud | Neon |
|---|---|---|
| Pricing model | usage-based | Unknown |
| Platforms | Web, Api, Cli | Cloud |
| Founded | 1997 | 2021 |
Identical on both: starting price (Free), free tier (Yes), user rating (Not yet rated), category (Unknown).
What each one covers
Drawn from each product's published feature list. An absence here means we hold no record of it - not that the product lacks it.
Only in Hetzner Cloud
- Cloud servers
- Block storage
- Object storage
- Load balancers
- Networks
- Firewalls
- Floating IPs
- Backups
Only in Neon
- Serverless PostgreSQL
- Database Branching
- Autoscaling
- Bottomless Storage
- Point-in-time Recovery
- Connection Pooling
- Read Replicas
- Instant Cloning
Both cover
- Cloud deployment
- Web support
What people use each for
The jobs each tool is most often brought in to do.
Hetzner Cloud
- Low-cost virtual servers for development and testingnot Neon
- European hosting with data held in Germany or Finlandnot Neon
- Workloads with heavy egress, where included traffic mattersnot Neon
- Self-hosting applications away from the hyperscalersnot Neon
Neon
- Serverless applicationsnot Hetzner Cloud
- Development databasesnot Hetzner Cloud
- Preview environmentsnot Hetzner Cloud
- Testingnot Hetzner Cloud
Where each one falls short
Documented limitations, not opinions. Every one is a constraint you would hit in normal use.
Hetzner Cloud
- Cost-Optimized plans are shown as currently unavailable
- The shared-resource tiers are positioned for variable usage and development rather than sustained production workloads
- Regions are limited to Germany, Finland, the United States and Singapore, so latency to other markets is a real constraint
- The uptime guarantee is 99.9 percent, below what the large hyperscalers offer on comparable services
- Support is 24/7 by email, without a phone channel
Neon
- Compute pricing at $0.106-$0.222/CU-hour means costs scale directly with workload, unlike fixed-price alternatives
- Separation of compute and storage may add complexity to cost prediction compared to all-in-one plans
Pricing, plan by plan
Hetzner Cloud
Free- CX11$3.29/month
- 1 vCPU
- 1GB RAM
- 25GB SSD
- CX21$6.59/month
- 2 vCPU
- 4GB RAM
- 40GB SSD
Neon
Free- FreeFree
- 100 CU-hours/month
- 0.5 GB storage
- 1 project
- Launch$15/month
- Pay-as-you-go compute
- $0.35/GB storage
- Multiple projects
- Scale$31/month
- Higher compute rates
- 99.95% SLA
- HIPAA compliance
Which should you pick?
Choose Hetzner Cloud if
- You need cloud servers.
- You want to start without paying.
- You work on Web, Api, Cli.
- You also want block storage.
Choose Neon if
- You need serverless postgresql.
- You want to start without paying.
- You work on Cloud.
- You also want database branching.
Questions people ask
- Is Hetzner Cloud or Neon better?
- Neither clearly leads. Hetzner Cloud starts at Free and Neon at Free, and user ratings are close enough to be indistinguishable. Choose on capability and platform support.
- Which is cheaper, Hetzner Cloud or Neon?
- Hetzner Cloud starts at Free and Neon at Free.
- Does Hetzner Cloud or Neon run on more platforms?
- Hetzner Cloud runs on Web, Api, Cli. Neon runs on Cloud.
- Can I use Hetzner Cloud for free?
- Both have a free tier, so you can try either at no cost before committing.
- What is Hetzner Cloud best used for?
- Hetzner Cloud is most often used for low-cost virtual servers for development and testing, european hosting with data held in germany or finland, workloads with heavy egress, where included traffic matters, self-hosting applications away from the hyperscalers. Of those, low-cost virtual servers for development and testing and european hosting with data held in germany or finland are not what Neon is typically brought in for.
- What can Hetzner Cloud do that Neon cannot?
- Hetzner Cloud covers Cloud servers, Block storage, Object storage, Load balancers. Neon covers Serverless PostgreSQL, Database Branching, Autoscaling, Bottomless Storage. Both handle Cloud deployment, Web support.
Answered from the vendors’ own pages
Neon: What is Neon and what makes it different?
Neon is a serverless PostgreSQL database that separates compute and storage, enabling automatic scaling and instant database branching. After acquisition by Databricks in May 2025, pricing has been significantly reduced.
SourceNeon: Does Neon offer a free tier?
Yes, Neon's free tier includes 100 compute units per month and 0.5 GB of storage. This is suitable for development and small projects.
SourceNeon: What are the paid plans and pricing for Neon?
Neon offers consumption-based pricing on Launch ($0.106/CU-hour, approximately $15/month) and Scale ($0.222/CU-hour, approximately $31/month) plans with separate storage billing at $0.35/GB-month. No monthly minimum required.
SourceNeon: What features does Neon provide?
Neon includes git-like branching for database copies, point-in-time recovery, data anonymization for testing, managed authentication, serverless functions, and object storage that branches with projects.
SourceNeon: What compliance and reliability guarantees does Neon provide?
Neon's Scale tier offers 99.95% uptime SLA, HIPAA compliance, SOC2 certification, and private networking via PrivateLink at no extra cost.
Source