You should ask your customers/prospects which they'd prefer as it depends a lot on your specific product and how you are targeting it. But in general I'd recomm

You should ask your customers/prospects which they'd prefer as it depends a lot on your specific product and how you are targeting it. But in general I'd recommend starting with cloud because the companies that will take a chance on a new service will tend to be smaller and prefer cloud. With self-hosting, you also need to be sure your contract size is large enough to justify the time you'll have to put into support, which can be significant. A good model for starting out imo is to offer cloud, but have a contact us option for self-hosting. Do self-hosting once you have a customer or two who wants it and is serious enough to pay for a contract that will cover support costs.