Most enterprises deploying AI technology have been turning to hyperscalers such as Amazon, Google and Microsoft to provide all the necessary infrastructure.
According to IDC data released this month, cloud and shared environments account for most AI server spending — 72% in the first half of 2024. That’s because enterprises have been lagging behind on adopting on-premises infrastructure, the research firm says.
On-premises AI does offer some benefits. Companies can keep their data local, for example, or reduce lag by putting their computing capacity close to where it is needed. And if companies know they’re going to need a predictable amount of computing every month, on-premises deployments can even reduce costs.
