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We have this running in our organisation on our own server and it works great!

We had some issues with SMTP configuration, but for the rest the installation was very easy, thanks to Phusion Passenger.

Are the features of the premium plan (search across all projects & time-tracking) part of the installation?

Heroku makes it really easy because you just enable the free sendgrid add-on and it automatically works without any configuration whatsoever.