Decision Axes Framework
Evaluating the trade-offs between Local Intelligence and Cloud APIs.
> EXEC_SUMMARY
The choice to run on-premise is rarely about "performance" alone. It is a strategic decision balancing Privacy Risk, Capital Expenditure, and Operational Complexity.
Use this framework to visualize where your organization sits on the spectrum.
01. Security & Privacy
Cloud API
- Contractual Trust (SOC2, HIPAA)
- Data traverses public internet
- Provider *can* see data (unless Zero Access)
On-Premise
- Physical Trust (Air-Gapped)
- Data stays on owned metal
- Zero leakage risk by design
02. Total Cost of Ownership (TCO)
Cloud API
- Opex (Operating Expense)
- Pay per Token
- Scales linearly with usage
- Best for: Spiky/Low volume
On-Premise
- Capex (Capital Expense)
- Pay for Silicon + Energy
- Near-zero marginal cost per token
- Best for: 24/7 heavy volume
03. Reliability & Control
Cloud API
- Forced Deprecations
- Model Weight Changes
- Rate Limits / Service Outages
On-Premise
- Frozen Weights (Forever Version)
- No Rate Limits
- Full uptime control
04. Talent Requirement
Cloud API
- Software Engineering
- REST API Integration
- Low Friction
On-Premise
- ML Ops / DevOps
- CUDA / Hardware Debugging
- High Friction
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