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Software · head to head

Neon vs Vault

Neon logo

Neon

Software

Serverless Postgres for modern developers

From
Free
Rated
-
Full reviewWebsite
Vault logo

Vault

Software

Manage Secrets and Protect Sensitive Data

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; Vault vault 1.15.0 and later is licensed under the Business Source License 1.1, not an OSI open source licence, with IBM Corporation as licensor
  • They diverge on capability: Neon covers Serverless PostgreSQL, Vault covers Secrets management.

Where they differ

Only the attributes on which Neon and Vault actually diverge.

Attributes where Neon and Vault differ
AttributeNeonVault
Pricing modelUnknownopen-source
PlatformsCloudLinux, Windows, Mac, Cloud
Founded20212015

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 Neon

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

Only in Vault

  • Secrets management
  • Encryption
  • Authentication
  • Authorization
  • Audit logging
  • API access
  • High availability
  • Replication

Both cover

  • TLS
  • Cloud deployment

What people use each for

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

Neon

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

Vault

  • Centrally storing and rotating secrets, API keys and database credentialsnot Neon
  • Issuing short-lived dynamic credentials to applications instead of static passwordsnot Neon
  • Encryption as a service and PKI certificate issuancenot 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

Vault

  • Vault 1.15.0 and later is licensed under the Business Source License 1.1, not an OSI open source licence, with IBM Corporation as licensor
  • The Additional Use Grant forbids offering Vault to third parties on a hosted or embedded basis in a paid product that competes with IBM's paid versions of Vault
  • Each version only converts to MPL 2.0 four years after that version is published, and the Change Date is tracked per version
  • Replication, HSM support, namespaces, performance standby nodes, FIPS builds, control group authorisation, multi-factor authentication, secrets sync and lease count quotas all require a Vault Enterprise licence
  • A Vault Enterprise licence must be applied to the cluster before any Enterprise feature can be used

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

Vault

Free
  • Open SourceFree
    • Secrets management
    • Encryption as a service
    • Identity management
  • EnterpriseFree
    • Advanced features
    • Premium support
    • Dedicated updates

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 Vault if

  • You need secrets management.
  • You want to start without paying.
  • You work on Linux, Windows, Mac, Cloud.
  • You also want encryption.
Vault review

Questions people ask

Is Neon or Vault better?
Neither clearly leads. Neon starts at Free and Vault at Free, and user ratings are close enough to be indistinguishable. Choose on capability and platform support.
Which is cheaper, Neon or Vault?
Neon starts at Free and Vault at Free.
Does Neon or Vault run on more platforms?
Neon runs on Cloud. Vault runs on Linux, Windows, Mac, Cloud.
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 Vault is typically brought in for.
What can Neon do that Vault cannot?
Neon covers Serverless PostgreSQL, Database Branching, Autoscaling, Bottomless Storage. Vault covers Secrets management, Encryption, Authentication, Authorization. Both handle TLS, Cloud deployment.

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
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
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
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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