I tried both, and I'm currently focused on self-hosting. Selling a hosted version has usually less friction (customer has less to do), but it also requires a l

I tried both, and I'm currently focused on self-hosting. Selling a hosted version has usually less friction (customer has less to do), but it also requires a lot more resources from your side (both time-wise to run/maintain the service, but it also costs you money to run it). With my self-hosted analytics platform I decided to go self-hosted only, so the main focus now is making the installation and distribution as easy as possible. One way to do it, is to provide images to hosting providers and their marketplace, for example what I did with my DigitalOcean app: https://marketplace.digitalocean.com/apps/uxwizz https://marketplace.digitalocean.com/apps/uxwizz In this way, the customers can easily try the app, and install it. The main drawback of self-hosting, currently, is that there are A LOT fewer people in your target audience. I think this will grow in the future, but at the moment, hosted services are still the easier sell.