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Cloud, edge or on-prem? Navigating the new AI infrastructure paradigm

  • Enterprise data infrastructure continues to transform due to data hungry generative AI and organizations continue to grapple with the cloud/edge/on-prem question for near-instant access to data while knowing it is protected.
  • Hybrid models are seen as the way forward by many enterprises with 85% of cloud buyers deploying or in the process of deploying hybrid cloud according to IDC. AI is driving the shift to hybrid cloud and edge as models require large datasets and more computational power.
  • Spending on edge is expected to reach $232bn this year due to several factors including latency-sensitive applications, limited connectivity environments and restrictions on where data can reside due to government legislation or corporate governance.
  • The volume of data continues to increase and the costs associated with transmitting it to a central data store also continues to grow which makes edge computing advantageous. The influx of data can overwhelm core infrastructure which is where edge computing comes in to cache results and provide resiliency and performance in the field.
  • Different cloud environments have varying benefits with public cloud perfect for auto-scaling to meet peak usage demands while on-premises data centers and private cloud environments secure and provide better control over proprietary data.
  • Hybrid clouds allow enterprises to choose the right tool for the job such as in financial services where they can maintain their own data centres for banking operations while leveraging the cloud for web and mobile-based customer access.
  • A hybrid approach with a combination of local devices, edge computing and larger private or public models can preserve sensitive data using strict isolation techniques.
  • Hybrid can increase management complexity, but cloud providers have been extending their platforms to both on-prem and edge locations whilst OEMs and ISVs have been integrating with cloud providers.
  • 80% of respondents to an IDC survey indicated that they either have or plan to move some public cloud resources back on-prem.
  • Cloud providers have failed to convince customers that on-premises data centers would disappear altogether.

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