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UniFi cloud hosting vs. Dream Machine: Why go hosted?

The Dream Machine and Dream Machine Pro are some of Ubiquiti’s most popular devices. They’re powerful, well-built, and give you a lot in one box: a router, a UniFi controller, and sometimes even storage for camera recordings. But there’s another option that more people are considering lately, cloud-hosted UniFi controllers.

Why? Because sometimes having all-in-one hardware sitting in your closet isn’t the best solution. Let’s break down what each option gives you, where they shine, and why more folks are going hosted, even if they already own a Dream Machine.

Let's dive in !!

Before we dive in, please don't self-host your UniFi Controller if you take care of client networks. Sooner or later this will cause issues! It's fine for home users, but definitely not recommended for IT service businesses and MSPs. If you want secure, reliable and a scalable hosting solution check out UniHosted.

What is UniFi cloud hosting?

Cloud hosting is when your UniFi controller runs on a server online, instead of on a local device like a Dream Machine, Cloud Key, or a self-hosted PC.

You still manage your UniFi gear through the same dashboard (via unifi.ui.com), but the controller lives in the cloud. Services like UniHosted make this simple, you sign up, connect your devices, and you’re off.

What’s the Dream Machine?

The Dream Machine (UDM) and Dream Machine Pro (UDM Pro) are UniFi's “all-in-one” devices. They combine a router, firewall, switch (for UDM Pro), and the UniFi controller software all in one unit.

  • UDM is aimed at home users
  • UDM Pro/SE is aimed at small businesses or larger networks

They’re plug-and-play, fast, and run the UniFi OS.

Why do people like the Dream Machine?

1. It’s all-in-one

You get a router, firewall, and controller. No need to piece things together. For people new to UniFi, that’s a win.

2. It’s powerful

You can run features like IDS/IPS, traffic shaping, and VPN—all from one device.

3. No monthly cost

Once you buy it, it’s yours. No ongoing subscription.

4. Local control

You don’t need an internet connection to access the controller if you're on the same LAN.

These are solid reasons to use it, and for a lot of setups, the Dream Machine gets the job done well.

So why bother with cloud hosting?

Because it’s not always about what you can do, it’s about how much time, effort, and risk you want to take on.

Cloud hosting takes a different approach. Instead of running everything from your local hardware, the controller lives online. You still use UniFi switches, APs, and gateways, but the “brain” is in the cloud.

And that setup has some real perks.

Where the Dream Machine falls short

1. It's a single point of failure

If your UDM dies, so does your controller. No backups, no access, no configuration recovery. You’re down.

With cloud hosting, even if a device dies, the controller is safe and backed up.

2. Limited scalability

Dream Machines are fine for one or two sites. But if you're managing five, ten, or more locations? Things get messy fast. There’s no clean way to manage multiple sites across Dream Machines.

Cloud controllers make that part easy. You just add more sites. Done.

3. Manual updates and maintenance

With a Dream Machine, you're responsible for:

  • Firmware updates
  • Controller updates
  • Backups
  • Storage health (on UDM Pro)

If you forget or mess something up, you could lose access to your site or run into bugs. With hosted controllers, updates are automatic, tested in advance, and backups happen on a schedule.

4. Port forwarding for remote access

If you want to manage a Dream Machine remotely without using unifi.ui.com, you’ll need to forward ports. That opens up potential security holes, especially if done wrong.

With hosted UniFi controllers, remote access is baked in.

What cloud hosting does better

Let’s look at what you actually get from a hosted UniFi controller:

1. Instant setup

Spin up a new controller in a few clicks. No software to install. No networking headaches. It’s just ready.

2. Remote access built-in

You can access your controller from anywhere with zero setup. Your phone, laptop, whatever. It just works.

3. Automatic updates and backups

No need to think about firmware or config backups. Good cloud hosts (like us at UniHosted) handle this behind the scenes. If something breaks, you’ve got snapshots.

4. Scale to multiple clients or locations

Got a few coffee shops, rental homes, or offices? Hosting lets you manage all of them from one place—without needing a Dream Machine at each site.

Just put in a UniFi gateway and a few APs, and you're good to go.

5. It’s safer

Cloud hosting means you’re not relying on a dusty piece of hardware sitting in a closet. Your controller lives in a secure, redundant environment.

6. No hardware headaches

Your Dream Machine dies? Now you’re replacing gear, reloading backups (if you made them), and hoping your config wasn’t corrupted.

Hosted? You keep rolling. You can even ship a new AP to a site and adopt it remotely.

Use cases where hosting wins

Let’s be real, if you’re running a home network with a few APs, the Dream Machine is fine.

But if you're doing anything like:

  • Managing networks for clients
  • Running networks across multiple locations
  • Supporting remote offices or pop-ups
  • Setting up guest Wi-Fi in retail spaces
  • Using third-party VPN tunnels
  • Wanting zero-hardware overhead

Hosting wins. Every time.

When does a Dream Machine make more sense?

If you:

  • Only have one site
  • Want everything local
  • Don’t mind handling your own updates
  • Want zero monthly costs
  • Like having physical access to your controller

Then the Dream Machine is still a great pick. Especially the UDM SE with its built-in PoE switch and Protect storage.

What if I already have a Dream Machine?

You can still benefit from hosted UniFi, even if your routing stays local. Here’s how:

  • Host the controller in the cloud
  • Use the Dream Machine only as a gateway
  • Point it to your hosted controller using set-inform

Now you get the performance of local routing with the convenience of cloud management.

It’s not super common, but it works. More often though, folks with existing Dream Machines just let them do both jobs (routing + controller). And that’s fine, as long as you understand the tradeoffs.

Hosting isn’t new, just better now

People have been self-hosting UniFi controllers on VPS servers for years. It works, but it’s a pain.

You need to:

  • Pick a hosting provider
  • Install Java and UniFi Network manually
  • Handle port rules and firewalls
  • Monitor performance
  • Configure SSL

And if you mess up? Your network’s offline.

That’s why managed UniFi hosting is taking off. It gives you all the benefits of a hosted controller, without the server admin headaches.

And yes, we’re biased, but hear us out

At UniHosted, we built our platform because we were tired of self-hosting UniFi controllers. Tired of dealing with updates, backups, SSL certs, and random crashes.

We wanted something fast, simple, and safe. So we built it.

Now anyone can launch a hosted UniFi controller in under 60 seconds. We handle the maintenance, backups, and updates. You just manage your network like normal.

We even have a free plan for up to 5 devices. So if you're curious, there’s no risk.

Final thoughts

The Dream Machine is a solid piece of gear. It’s great for homes, small offices, or single-site installs. But it comes with limitations. If you’re building something bigger, or just want a cleaner, more hands-off experience, cloud hosting makes a lot of sense.

At the end of the day, it’s about what you value most. If you like having full control and local hardware, the Dream Machine might be your thing. But if you're looking to offload the boring stuff, hosting just makes life easier.