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Neon vs Restate

Neon logo

Neon

Cloud

Serverless Postgres for modern developers

From
Free
Free plan
Yes
Full reviewWebsite
Restate logo

Restate

Developer Tools

Durable execution engine in Rust with a free tier and low-latency workflows

From
Free
Free plan
Yes
Full reviewWebsite

The short version

  • Each has a real cost: Neon compute pricing at $0.106-$0.222/CU-hour means costs scale directly with workload, unlike fixed-price alternatives; Restate the runtime is under a Business Source Licence rather than an open source licence, so building a competing managed offering on it is prohibited and some procurement functions will reject it on licence grounds alone.
  • They diverge on capability: Neon covers Serverless PostgreSQL, Restate covers Durable execution.
  • Prices and features above were last checked on 31 August 2026.

Where they differ

Only the attributes on which Neon and Restate actually diverge.

Attributes where Neon and Restate differ
AttributeNeonRestate
Pricing modelUnknownPer month by durable action count
PlatformsCloudLinux, macOS, Web
CategoryCloudDeveloper Tools
Founded2021Unknown

Identical on both: starting price (Free), free tier (Yes), user rating (Not yet rated).

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 Neon

  • Serverless PostgreSQL
  • Database Branching
  • Autoscaling
  • Bottomless Storage
  • Point-in-time Recovery
  • Connection Pooling
  • Read Replicas
  • Instant Cloning

Only in Restate

  • Durable execution
  • Virtual objects
  • Single binary runtime
  • Multi-language SDKs
  • Workflows and sagas
  • Restate Cloud

What people use each for

The jobs each tool is most often brought in to do.

Neon

  • Serverless applicationsnot Restate
  • Development databasesnot Restate
  • Preview environmentsnot Restate
  • Testingnot Restate

Restate

  • Payment or order flows where a crash between two external API calls must not double-charge or lose the ordernot Neon
  • AI agent loops that call tools over minutes or hours and must survive a deployment mid-runnot Neon
  • Replacing hand-rolled retry, idempotency key and outbox code across a set of microservicesnot Neon
  • A small team that wants durable workflows without operating a Temporal cluster and its databasenot Neon

Where each one falls short

Documented limitations, not opinions. Every one is a constraint you would hit in normal use.

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

Restate

  • The runtime is under a Business Source Licence rather than an open source licence, so building a competing managed offering on it is prohibited and some procurement functions will reject it on licence grounds alone.
  • Restate Cloud jumps from a free fifty thousand actions straight to 300 US dollars a month for twenty million, so a workload sitting at a few hundred thousand actions pays enterprise-shaped money for hobby-shaped volume.
  • It is a young project against Temporal’s established base, so hiring engineers who already know it is unrealistic and the answer to most questions is in the docs rather than on Stack Overflow.
  • The programming model requires structuring code around durable handlers and virtual objects, which is a genuine rewrite for existing services rather than a library you add.
  • The single-binary simplicity that makes small deployments cheap also means fewer operational knobs at very large scale than a system designed as separable components.

Pricing, plan by plan

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

Restate

Free
  • FreeFree
    • Fifty thousand durable actions per month
    • No credit card required
    • Community support
  • Starter$300/month
    • Twenty million actions per month
    • Two hundred actions per second, bursting to one thousand
    • Twenty GB storage
  • Pro$1000/month
    • Fifty million actions per month
    • Five hundred actions per second, bursting to two thousand
    • Fifty GB storage
  • Enterprise$undefined/year
    • Negotiated volume
    • Twenty-four seven P0 support
    • 99.99 per cent SLA

Which should you pick?

Choose Neon if

  • You need serverless postgresql.
  • You want to start without paying.
  • You work on Cloud.
  • You also want database branching.
Neon review

Choose Restate if

  • You need durable execution.
  • You want to start without paying.
  • You work on Linux, macOS, Web.
  • You also want virtual objects.
Restate review

Questions people ask

Is Neon or Restate better?
Neither clearly leads. Neon starts at Free and Restate at Free, and user ratings are close enough to be indistinguishable. Choose on capability and platform support.
Which is cheaper, Neon or Restate?
Neon starts at Free and Restate at Free.
Does Neon or Restate run on more platforms?
Neon runs on Cloud. Restate runs on Linux, macOS, Web.
Can I use Neon for free?
Both have a free tier, so you can try either at no cost before committing.
What is Neon best used for?
Neon is most often used for serverless applications, development databases, preview environments, testing. Of those, serverless applications and development databases are not what Restate is typically brought in for.
What can Neon do that Restate cannot?
Neon covers Serverless PostgreSQL, Database Branching, Autoscaling, Bottomless Storage. Restate covers Durable execution, Virtual objects, Single binary runtime, Multi-language SDKs.

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.

Source
Restate: Is Restate open source?

The SDKs are MIT. The runtime is under a Business Source Licence, which permits self-hosting but not offering it as a competing service.

Neon: 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.

Source
Restate: How does it compare with Temporal?

Same problem, different shape: one Rust binary with embedded storage instead of a server plus database plus workers, and lower per-step latency.

Neon: 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.

Source
Restate: Is there a free tier?

Yes, fifty thousand durable actions a month on Restate Cloud with no card required.

Neon: 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.

Source
Restate: Which languages are supported?

TypeScript, Java, Kotlin, Go, Python and Rust.

Neon: 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
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