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What Is n8n? What It Does, Deployment Options and Licensing

n8n is an automation platform that connects applications and AI models through visual workflows. How it works, how to deploy it and what its license allows.

Oğuzhan Gerçek··6 min read
What Is n8n? What It Does, Deployment Options and Licensing

Short answer: n8n is an automation platform that builds workflows by connecting applications, data sources and AI models in a node-based visual editor: jobs such as "when a form is submitted, create the CRM record, post to Slack, email the weekly report" are built without code, with JavaScript or Python added where needed. Released in 2019 by Berlin-based n8n GmbH, the tool is distributed under a source-visible "fair-code" license: you can install it on your own server or use n8n Cloud. On the enterprise side its real value is that data stays on your own infrastructure, and that it offers a visual way of wiring AI agents to tools.

What is n8n?

In its documentation's definition, n8n is a fair-code licensed workflow automation tool that combines AI features with business process automation. According to Wikipedia, it is developed by n8n GmbH in Berlin; the founder is Jan Oberhauser and the project launched publicly in October 2019. The name is short for "nodemation": the node view, the Node.js runtime and automation.

The project's README presents the tool as "secure workflow automation for technical teams" and promises two things at once: the flexibility of code and the speed of no-code tools. The same document counts more than 400 ready-made integrations and more than 900 ready-to-use templates.

How n8n works: nodes and workflows

A workflow is a flow that starts with a trigger and consists of connected nodes:

  • Trigger: The event that starts the flow: a scheduled job, a request arriving at a webhook, a new email, a new form entry.
  • App nodes: Ready-made integrations; they connect to services such as CRMs, email, databases, messaging and file storage through their APIs. For services without a dedicated node there is a generic HTTP request node.
  • Logic nodes: Conditions, loops, merges, waits; nodes that transform data.
  • Code node: According to the README, you can write JavaScript or Python when needed and add npm packages.
  • AI nodes: According to the README, AI agent workflows based on LangChain can be built with your own data and models; the model is one node, the tools are other nodes. This is the visual counterpart of the "workflow or agent" distinction described in the AI agent article.

Credentials (API keys, OAuth connections) are stored separately from the flow and assigned to nodes; every run of a flow is logged, and when it fails you can see at which node, and with which data, it stopped.

Where it is used

  • Sales and marketing: Writing form and website events into the CRM, enriching a lead and notifying the sales team.
  • IT operations: Opening tickets from monitoring alerts, compiling daily reports, scheduling backup and certificate checks.
  • Data jobs: Collecting and merging data from several sources; high-volume scheduled data pipelines are better served by ETL tools, but small and medium flows are built in n8n.
  • AI: Classifying incoming email and drafting replies, summarizing documents, connecting an agent to internal tools. The documentation also has guides for connecting Claude Desktop and Claude Code to n8n's MCP server; MCP is covered in a separate article.

Deployment options: n8n Cloud or your own server?

The README gives two routes: the cloud service hosted by n8n, or installing it on your own server. On your own server, the shortest route is Docker:

docker volume create n8n_data
docker run -it --rm --name n8n -p 5678:5678 -v n8n_data:/home/node/.n8n docker.n8n.io/n8nio/n8n

The editor opens at http://localhost:5678; with Node.js installed you can also try npx n8n. In production, what comes on top of that: a reverse proxy and TLS, an externally reachable address for webhooks, backups of the database that holds flows and credentials, version updates and permission management. According to the README, the enterprise edition adds advanced permissions, SSO and air-gapped deployment. Running it on Docker and Kubernetes is covered in the respective articles.

This is the basic difference from cloud-only tools such as Zapier: when n8n runs on your own server, the data a flow processes never leaves your infrastructure. For flows that carry personal data, that settles the cross-border transfer question under KVKK from the start.

Licensing: what does fair-code mean?

n8n is not open source; it is source-available software. According to the README, fair-code distribution has three traits: the source code is always visible, it can be self-hosted anywhere, and it can be extended with your own nodes. The licenses are the Sustainable Use License and the n8n Enterprise License; according to Wikipedia, the project was first distributed under Apache 2.0 with the Commons Clause and moved to its own Sustainable Use License in March 2022. That license allows internal use and modification but bars reselling n8n as a competing hosted service. For internal automation the restriction is no obstacle in practice; if you plan to offer n8n to your customers as a service, read the license text.

On the enterprise side

Which steps of a process are suited to automation is the subject of our process optimisation service, and the design of connections between systems belongs to the system integration page; connecting AI agents to tools safely is covered under AI stack engineering.

Frequently asked questions

What does n8n mean? It is short for "nodemation": node-based automation. The name of the automation platform that connects applications and AI models through visual workflows.

Is n8n free? When you install it on your own server, the software is free; the server, maintenance and backup costs are yours. n8n Cloud and the enterprise features (SSO, advanced permissions) are paid.

Is n8n open source? Not strictly; it is distributed under a "fair-code", source-available license (the Sustainable Use License). Internal use and modification are free, selling n8n as a competing hosted service is not.

What is the difference between n8n and Zapier? Both are no-code automation tools. n8n can be installed on your own server and includes a code node and AI agent nodes; Zapier is offered only in the cloud. If data residency matters, that is where the difference starts.

How do you install n8n? The shortest route is a single Docker command; the editor opens on port 5678. For production you add a reverse proxy, TLS, a database backup and an update routine.

Can you build an AI agent with n8n? Yes. With the LangChain-based agent nodes, a language model, tools and memory are wired together visually; which tools the agent may reach and at which step it asks for approval are defined in the flow.

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