Comparison

Cloud AI vs On-Prem AI

Cloud AI APIs are fast to start. Customer-premises AI appliances are built for enterprises that need direct control over inference, identity, operational records, model routing and compliance-sensitive workloads.

01 · Side by side

The trade-off enterprises face.

The right choice depends on whether convenience or direct infrastructure control matters more for the workload.

Cloud AIOn-Prem AI with LLM Machines
Data locationRequests are processed in provider infrastructureNothing leaves your infrastructure
Model controlModels and revisions follow the provider catalogueYou approve models, revisions, routes and access policies
Operational ownershipProvider-operated serviceCustomer-controlled appliance with managed operations
Update controlProvider release scheduleApproved maintenance windows and controlled rollback
Application portabilityProvider-specific APIs, models and policiesCustomer-owned applications and a documented API contract
Product source rightsDefined by the provider serviceFirst-party source available for internal use; upstream licences preserved
ComplianceRequires provider review and compensating controlsDesigned around EU AI Act, GDPR, NIS2 and Data Act needs
Best fitLow-risk experiments and public dataSensitive data, regulated teams and repeat workloads
02 · Decision guide

When on-prem AI makes sense.

On-prem AI becomes more compelling as sensitivity, operational control and integration depth increase.

Sensitive data

Prompts include confidential material.

Contracts, code, financial data, patient data, legal documents and customer records are better processed in a controlled environment.

Existing workflows

Your applications should stay familiar.

Chat Completions is the documented API protocol your favourite apps and harnesses use to access approved local models while your team retains the application experience.

Governance

Security needs inspectable operations.

Metadata-only audit, user access, model policy and operational controls are easier to defend when the platform is inside your perimeter.

Next

Compare architectures against your real workload.

We size an appliance around your model needs, capacity, data sensitivity and deployment constraints.