A survey indicates that enterprises are opting to purchase their hardware rather than rely on public cloud providers due to the spiraling costs associated with AI workloads. Many IT leaders reported unexpected cloud expenses, with AI tasks requiring significant compute power and storage that can lead to unpredictable billing. In contrast, dedicated servers provide predictable pricing and control over hardware, appealing to enterprises facing tighter budgets and a need for better security and resource optimization.
AI systems are computational beasts with costs that can easily spiral out of control in a public cloud environment, leading to unexpected cloud-related expenses.
Nearly half of IT leaders in a recent survey reported unexpected costs ranging from $5,000 to $25,000, with AI workloads driving significant overruns.
The flexibility of the cloud comes at the cost of predictability, as many existing resources are underutilized due to fears of under-resourcing critical AI tasks.
Leasing or buying physical servers for AI workloads allows enterprises full control of the hardware, resulting in a clearer return on investment and eliminating hidden costs.
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