Should you purchase or lease? RaspberryPi compared to VPS

I’ve been considering self-hosting a service and faced a dilemma: Raspberry Pi 5 or a VPS?

Service Requirements

First things first: what does this service need to function? Research suggests 4GB RAM and 20-30GB disk space should suffice.

Cost Analysis

A Raspberry Pi 5 would set me back roughly 100€ (accessories included) plus electricity costs. A comparable VPS from Hetzner VPS prices is about 4.50€/month.

To offset the Raspberry Pi’s upfront cost, I’d need to run the service for a minimum of two years. Beyond that, the Raspberry Pi becomes more cost-effective (monthly cost considered) than ongoing VPS payments to Hetzner.

Complexity Comparison

Frankly, both options are fairly involved (if done properly) and similar administratively. The key difference is the Raspberry Pi needing something like Tailscale Funnel for public internet exposure since my ISP (Fastweb) operates behind a NAT.

Additionally, there’s the initial operating system installation and network setup on the Raspberry Pi, though that’s arguably the easiest part.

Everything else—web server and database setup, service installation and configuration—would be identical.

Finding the Right Fit

Both approaches are valid with their respective advantages and disadvantages. The key is to assess them based on individual needs.

Raspberry Pi (Ownership)

Let’s examine buying a Raspberry Pi.

Advantages

Hardware ownership
The enjoyment of owning a device
Essentially free service operation after a couple of years (electricity aside)
Data privacy

Disadvantages

Home connection less reliable than VPS infrastructure
Device failure after two years necessitates a new purchase
Slightly more complex initial setup
An expensive, unused device if the service is discontinued within a couple of months
Hardware degradation requiring periodic replacement

VPS (Rental)

Now, let’s consider renting a Virtual Private Server.

Advantages

Service uptime independent of local ISP outages
Lower initial investment
Minimal financial loss (less than 10€) if discontinued after a few months
Simpler initial setup

Disadvantages

Potential data privacy concerns
Ongoing costs beyond the two-year Raspberry Pi cost equivalent

No One-Size-Fits-All

Clearly, there’s no definitive answer. The choice depends on individual priorities and circumstances.

In my case, I stumbled upon a third option combining benefits from both, simplifying setup (operational in under an hour), and most importantly, costing 0€!