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Hosting Models & Deployment Patterns

Use this guide to choose how your MCP server runs in development and production. Each option includes pros/cons and a minimal config example.

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Quick Comparison

OptionSetupControlCostScaleBest For
Self-HostedHighFullYou payYou manageLarge-scale products
Pylee-ManagedLowSharedUsage-basedAutomaticMost teams (coming soon)
Package-BasedLowUserFreeN/AOSS / local tools
HybridMedMixedVariesFlexibleEnterprise solutions
Prototype locally with Package-Based. For team usage, move to Pylee-Managed (when available) or Self-Hosted. Use Hybrid when different environments need different models.

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Self-Hosted (Remote HTTP/SSE)

You operate the server (cloud/infra of your choice), exposing an HTTP/SSE endpoint. When to choose
  • You need full control, custom scaling, or specific compliance controls.
  • You already have an ops platform and observability in place.
Pros
  • Maximum control and customization
  • Fine-grained scaling and performance tuning
Cons
  • DevOps burden (uptime, security, on-call)
  • You pay infra costs directly
Minimal listing example 
{
  "type": "remote",
  "url": "https://mcp.yourcompany.com",
  "transport": "sse"
}

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Pylee-Managed (Hosted) — Early Access

Pylee runs the server for you. You provide the package/endpoint; Pylee handles infra, scaling, and monitoring. When to choose
  • You want zero DevOps and fast team-wide adoption.
  • You value integrated secrets, monitoring, and CDN.
Pros
  • No infrastructure to manage
  • Automatic scaling and built-in observability
  • Integrated secrets management
Cons
  • Less low-level control than self-hosted
  • Availability phased (early access)
Interested in early access? Contact support@pyleeai.com.

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Package-Based (Local stdio)

Users run the server on their own machines (npm/PyPI/Docker). Great for development, personal workflows, and OSS. When to choose
  • Local development and prototyping
  • Data must stay on the user’s machine
Pros
  • No hosting cost
  • Works offline; user data stays local
Cons
  • Version fragmentation across machines
  • Limited to local resources; not shared by default
Minimal listing example 
{
  "type": "stdio",
  "package": "@yourorg/mcp-server",
  "command": "npx",
  "args": ["@yourorg/mcp-server"]
}

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Hybrid Patterns

Mix models by environment:
  • Dev: Package-Based local stdio
  • Staging: Pylee-Managed (or Self-Hosted small cluster)
  • Prod: Self-Hosted with autoscaling and hard SLOs
When to choose
  • Different teams/environments need different guarantees
  • You’re migrating from local to managed/remote over time
Pros
  • Right-sized tradeoffs by environment
  • Smooth migration path
Cons
  • More configurations to track
  • Requires clear version and rollout discipline

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Decision Guide

  • Need strict control/compliance/SLOs? → Self-Hosted
  • Want zero DevOps and fastest org rollout while balancing security? → Pylee-Managed (when available)
  • Prototyping or OSS tooling? → Package-Based
  • Different needs across envs? → Hybrid
Whatever you choose, keep secrets out of code. Prefer environment variables or the Pylee Secrets Vault.