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The Cloud wins the AI infrastructure debate by default


Analysis As artificial intelligence (AI) takes the world by storm, an old debate is reigniting: should businesses self-host AI tools or rely on the cloud?

They cited the security and control of keeping data in-house, the potential cost savings of investing in their own hardware, better performance for latency-sensitive tasks, the flexibility of customization, and the desire to avoid vendor lock-in. When considering the TCO – including hardware costs, maintenance, upgrades, and staffing – the cloud’s pay-as-you-go model is undeniably more cost-effective, especially for businesses with variable or unpredictable AI workloads. Traditional cloud AI services have faced criticism for their opaque privacy practices, lack of real-time visibility into data usage, and potential vulnerabilities to insider threats and privileged access abuse.

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