"A decade or so ago, the debate between cloud and on-premises computing raged. The cloud handily won that battle, and it wasn't even close. Now, however, people are rethinking whether the cloud is still their best choice for many situations. Also: Cloud-native computing is poised to explode, thanks to AI inference work Welcome to the age of AI, in which on-premises computing is starting to look good again."
"Existing infrastructures now configured with cloud services simply may not be ready for emerging AI demands, a recent analysis from Deloitte warned. Also: 5 must-have cloud tools for small businesses in 2025 (and my top 10 money-saving secrets) "The infrastructure built for cloud-first strategies can't handle AI economics," the report, penned by a team of Deloitte analysts led by Nicholas Merizzi, said."
Cloud-first strategies are increasingly inadequate for AI workloads and must be rethought in favor of hybrid deployments combining cloud and on‑premises resources. Existing cloud-configured infrastructures may not handle AI economics, causing frequent API calls and escalating costs that can reach tens of millions monthly. AI token prices have fallen dramatically, yet the volume and pattern of inference traffic drive unexpectedly high bills. Traditional processes, security models, and IT operating models designed for human-centered workflows and perimeter defense fail against machine-speed agents and threats. Organizations are therefore reevaluating on‑premises options to control costs, latency, and operational requirements for AI.
Read at ZDNET
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