Infrastructure Decision

Local AI vs. Cloud AI

Which architecture suits your organisation? We help you make the right decision – based on your data protection requirements, budget and use case.

67%
Companies prefer local AI for sensitive data
40%
Cost savings through hybrid architecture
100%
Data sovereignty with local AI

The Direct Comparison

Local AI (On-Premise)

Complete data sovereignty
GDPR-compliant without effort
No cloud dependency
Consistent latency
No ongoing API costs
Higher initial investment
Own IT infrastructure required
Model updates manual

Cloud AI

Ready to use quickly
Scalable on demand
No hardware investment
Automatic model updates
Data transfer to third countries (GDPR issue)
Ongoing API costs increase with usage
Vendor lock-in risk
No control over model behaviour

Hybrid (Recommended)

Process sensitive data locally, optionally handle non-sensitive processes in the cloud – maximum flexibility with full data control.

Decision Guide: What Suits You?

You process personal data

Local AI

GDPR requires data sovereignty

You want to start quickly without hardware

Cloud AI

Ready immediately, no infrastructure effort

You have sensitive and public data

Hybrid

Best combination of security and flexibility

You operate in regulated industries

Local AI

Full audit control and data storage in DE/EU

Local Models for Enterprise

NVIDIA Nemotron

High-performance language models optimised for enterprise use, operable on-premise.

Llama 3.x (Meta)

Open-source language model, operable locally, no licensing costs.

Mistral / Mixtral

Efficient European models with strong performance at low resource requirements.

Frequently Asked Questions

Do I need powerful hardware for local AI?

It depends on the model and use case. Many applications run on standard server hardware. For performance-intensive models NVIDIA GPUs are recommended. Wito AI dimensions the hardware to match your use case.

Is local AI really cheaper than cloud AI?

In the long run, often yes. After the initial hardware investment there are no more API costs. At high volumes the investment typically pays off within 12–18 months.

Can cloud AI be used in a GDPR-compliant way?

With the right contracts (data processing agreement, EU hosting) cloud AI can be partially GDPR-compliant. For highly sensitive data (personnel files, health data) we still recommend local AI.

What exactly is a hybrid AI model?

Sensitive processing takes place locally; non-sensitive processes can optionally use cloud services. Defined routing rules automatically decide what is processed where.

Which Architecture Suits You?

In a free consultation we analyse your requirements and recommend the optimal architecture.