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Selfhosted
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Personally, I would prefer docker containers as I can move them to a new server or even create backups very easily.
Backups are easily done with virtual machines as well. Taking, moving and restoring such backups is in fact much easier than moving docker containers between hosts as you don't have to differentiate between volumes and locally mounted directories for example. That being said, depending on the use case, containers can be a nice and lightweight solution to separate applications on a userspace level