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Cloud · head to head

Neon vs Valkey

Neon logo

Neon

Cloud

Serverless Postgres for modern developers

From
Free
Rated
-
Full reviewWebsite
Valkey logo

Valkey

Databases

Open-source in-memory data store forked from Redis

From
Free
Rated
-
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; Valkey younger project, so its track record is short even though the codebase is not
  • They diverge on capability: Neon covers Serverless PostgreSQL, Valkey covers Redis-compatible.
  • Prices and features above were last checked on 30 August 2026.

Where they differ

Only the attributes on which Neon and Valkey actually diverge.

Attributes where Neon and Valkey differ
AttributeNeonValkey
Pricing modelUnknownOpen source, no licence fee; managed cloud billed separately
PlatformsCloudLinux, macOS, Docker, Self-hosted
CategoryCloudDatabases
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 Valkey

  • Redis-compatible
  • BSD licensed
  • Rich data structures
  • Replication and persistence

What people use each for

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

Neon

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

Valkey

  • Continuing on a permissively licensed in-memory store after the Redis licence changenot Neon
  • Caching and session storage where a foundation-governed project is a procurement requirementnot Neon
  • Migrating from Redis without rewriting application codenot 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

Valkey

  • Younger project, so its track record is short even though the codebase is not
  • Divergence from Redis grows over time, so compatibility is strongest near the fork point and weakens as both evolve
  • Ecosystem tooling and documentation still frequently assume Redis, leaving translation work

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

Valkey

Free
  • ValkeyFree
    • Full functionality
    • Self-hosted
    • No usage limits

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 Valkey if

  • You need redis-compatible.
  • You want to start without paying.
  • You work on Linux, macOS, Docker, Self-hosted.
  • You also want bsd licensed.
Valkey review

Questions people ask

Is Neon or Valkey better?
Neither clearly leads. Neon starts at Free and Valkey at Free, and user ratings are close enough to be indistinguishable. Choose on capability and platform support.
Which is cheaper, Neon or Valkey?
Neon starts at Free and Valkey at Free.
Does Neon or Valkey run on more platforms?
Neon runs on Cloud. Valkey runs on Linux, macOS, Docker, Self-hosted.
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 Valkey is typically brought in for.
What can Neon do that Valkey cannot?
Neon covers Serverless PostgreSQL, Database Branching, Autoscaling, Bottomless Storage. Valkey covers Redis-compatible, BSD licensed, Rich data structures, Replication and persistence.

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
Valkey: Is Valkey free?

Yes, BSD-licensed open source under the Linux Foundation.

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
Valkey: Why does Valkey exist?

Redis changed its licence away from BSD in 2024. Valkey is the community fork continuing under permissive terms, backed by AWS, Google Cloud and Oracle among others.

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
Valkey: Can I switch from Redis to Valkey?

At the fork point it is drop-in compatible with existing clients and data. The further both projects move from that point, the more you should verify the specific features you use.

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
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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