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class="ArticleBase-LargeTitle">Cloud vs. On-Prem AI Accelerators: Choosing the Best Fit for Your AI Workloads</span></noscript><span class="ArticleBase-LargeTitle" data-testid="article-title">Cloud vs. On-Prem AI Accelerators: Choosing the Best Fit for Your AI Workloads</span><span class="ArticleBase-DefaultTitle" data-testid="article-default-title">Cloud vs. On-Prem AI Accelerators: Choosing the Best Fit for Your AI Workloads</span></h1><p class="ArticleBase-HeaderSummary" data-testid="article-summary">Know the pros and cons of cloud-based AI accelerators before deciding whether cloud or on-prem AI hardware aligns best with your workload requirements.</p></div></div></div><div class="TwoColumnLayout-Content"><div class="TwoColumnLayout-Body"><div class="ArticleBase-Body" data-testid="article-base-body"><div class="ArticleBase-Contributors" data-testid="article-base-contributors"><div class="Contributors Contributors_variant_normal Contributors_hasAvatar" 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2024</p></div></div><div data-component="article-read-time" class="ArticleReadTime ArticleReadTime_size_normal"><span data-component="icon" data-name="Clock" class="ArticleReadTime-Icon" 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class="ArticleBase-BodyContent ArticleBase-BodyContent_Article" data-testid="article-base-body-content"><div data-module="content" class="ContentModule-Wrapper"><p class="ContentParagraph ContentParagraph_align_left" data-testid="content-paragraph"><span class="ContentText ContentText_variant_bodyNormal" data-testid="content-text">AI accelerators — meaning specialized hardware devices that are adept at supporting </span><span class="ContentText ContentText_variant_bodyNormal" data-testid="content-text"><a class="ContentText-BodyTextChunk ContentText-BodyTextChunk_link" target="_blank" href="https://www.itprotoday.com/ai-machine-learning/ai-basics-a-quick-reference-guide-for-it-professionals">artificial intelligence</a></span><span class="ContentText ContentText_variant_bodyNormal" data-testid="content-text"> workloads — tend to be expensive to purchase and operate on your own.</span></p><p class="ContentParagraph ContentParagraph_align_left" data-testid="content-paragraph"><span class="ContentText ContentText_variant_bodyNormal" data-testid="content-text">That may make cloud-based AI accelerators seem like the perfect solution. Rather than having to buy your own AI hardware, why not just "rent" it from a cloud provider using an AI infrastructure-as-a-service (IaaS) model?</span></p><p class="ContentParagraph ContentParagraph_align_left" data-testid="content-paragraph"><span class="ContentText ContentText_variant_bodyNormal" data-testid="content-text">In many cases, this approach is indeed preferable. But it also comes with some drawbacks. Read on for guidance on deciding whether cloud-based AI hardware is right for you.</span></p><h2 class="ContentText ContentText_variant_h2 ContentText_align_left" data-testid="content-text" id="What Are AI Accelerators and AI Hardware?" style="scroll-margin-top:10rem;scroll-snap-margin-top:10rem"><span class="ContentText-BodyTextChunk ContentText-BodyTextChunk_bold">What Are AI Accelerators and AI Hardware?</span></h2><p class="ContentParagraph ContentParagraph_align_left" data-testid="content-paragraph"><span class="ContentText ContentText_variant_bodyNormal" data-testid="content-text">The terms "AI accelerator" and "AI hardware" refer to hardware devices that excel at AI tasks like model training and inference. In other words, they're devices other than generic computer processing units (CPUs), which can handle many types of AI workloads but which aren't particularly fast or efficient when working with AI.</span></p><p class="ContentParagraph ContentParagraph_align_left" data-testid="content-paragraph"><span class="ContentText ContentText_variant_bodyNormal" data-testid="content-text"><a class="ContentText-BodyTextChunk ContentText-BodyTextChunk_link" target="_blank" href="https://www.itprotoday.com/high-performance-computing/gpu-costs-aren-t-infinitely-scalable-what-can-be-done-">Graphical processing units</a></span><span class="ContentText ContentText_variant_bodyNormal" data-testid="content-text"> (GPUs) are one example of AI hardware. They're good for many types of AI workloads because they have a high core count, which allows them to process lots of data in parallel.</span></p><p class="ContentParagraph ContentParagraph_align_left" data-testid="content-paragraph"><span class="ContentText ContentText_variant_bodyNormal" data-testid="content-text">But GPUs aren't the only type of AI accelerator. Other options include neutral processing units (NPUs), which are designed specifically for large-scale parallel computing for AI applications (whereas GPUs are designed mainly for rendering video but happen to be useful for certain AI tasks as well). Application-specific integrated chips (ASICs) and field programmable gate arrays (FGPAs) can also be good options for some AI workloads, such as processing data very quickly.</span></p><p data-component="related-article" class="RelatedArticle"><span data-testid="related-article-title" class="RelatedArticle-Title">Related:</span><a class="RelatedArticle-RelatedContent" href="/servers/ai-accelerated-servers-fuel-growth-in-data-center-spending" target="_self" data-discover="true">AI Accelerated Servers Fuel Growth in Data Center Spending</a></p><h2 class="ContentText ContentText_variant_h2 ContentText_align_left" data-testid="content-text" id="On-Prem vs. Cloud-Based AI Hardware" style="scroll-margin-top:10rem;scroll-snap-margin-top:10rem"><span class="ContentText-BodyTextChunk ContentText-BodyTextChunk_bold">On-Prem vs. Cloud-Based AI Hardware</span></h2><p class="ContentParagraph ContentParagraph_align_left" data-testid="content-paragraph"><span class="ContentText ContentText_variant_bodyNormal" data-testid="content-text">Like most types of hardware, AI accelerators can run either </span><span class="ContentText ContentText_variant_bodyNormal" data-testid="content-text"><a class="ContentText-BodyTextChunk ContentText-BodyTextChunk_link" target="_blank" href="https://www.itprotoday.com/cloud-computing/4-reasons-to-choose-on-premise-vs-cloud-for-modern-workloads">on-prem or in the cloud</a></span><span class="ContentText ContentText_variant_bodyNormal" data-testid="content-text">.</span></p><p class="ContentParagraph ContentParagraph_align_left" data-testid="content-paragraph"><span class="ContentText ContentText_variant_bodyNormal" data-testid="content-text">An on-prem accelerator is one that you install in servers you manage yourself. This requires you to purchase the accelerator and a server capable of hosting it, set them up, and manage them on an ongoing basis.</span></p><p class="ContentParagraph ContentParagraph_align_left" data-testid="content-paragraph"><span class="ContentText ContentText_variant_bodyNormal" data-testid="content-text">A cloud-based accelerator is one that a cloud vendor makes available to customers over the internet using an IaaS model. Typically, to access a cloud-based accelerator, you'd choose a cloud server instance designed for AI. For example, </span><span class="ContentText ContentText_variant_bodyNormal" data-testid="content-text"><a class="ContentText-BodyTextChunk ContentText-BodyTextChunk_link" target="_blank" href="https://www.itprotoday.com/public-cloud/ai-drives-major-gains-for-big-3-cloud-giants-amazon-microsoft-google">Amazon</a></span><span class="ContentText ContentText_variant_bodyNormal" data-testid="content-text"> offers EC2 cloud server instances that feature its Trainium AI accelerator chip. Google Cloud offers Tensor Processing Units (TPUs), another type of AI accelerator, as one of its cloud server options.</span></p><p class="ContentParagraph ContentParagraph_align_left" data-testid="content-paragraph"><img data-component="image" class="ContentParagraph-Image" data-src="https://eu-images.contentstack.com/v3/assets/blt07f68461ccd75245/blt1630c92f3d5abe79/673b15bd2202404b7ac00d90/Cloud-Based-AI-Accelerators.png?width=700&auto=webp&quality=80&disable=upscale" src="https://eu-images.contentstack.com/v3/assets/blt07f68461ccd75245/blt1630c92f3d5abe79/673b15bd2202404b7ac00d90/Cloud-Based-AI-Accelerators.png?width=700&auto=webp&quality=80&disable=upscale" loading="lazy" alt="chart showing the pros and cons of cloud-based AI accelerators" title="chart showing the pros and cons of cloud-based AI accelerators"/></p><h2 class="ContentText ContentText_variant_h2 ContentText_align_left" data-testid="content-text" id="The Benefits of Cloud AI Accelerators" style="scroll-margin-top:10rem;scroll-snap-margin-top:10rem"><span class="ContentText-BodyTextChunk ContentText-BodyTextChunk_bold">The Benefits of Cloud AI Accelerators</span></h2><p class="ContentParagraph ContentParagraph_align_left" data-testid="content-paragraph"><span class="ContentText ContentText_variant_bodyNormal" data-testid="content-text">Why would you opt for a cloud-based accelerator instead of running one locally? The main benefits include:</span></p><p data-component="related-article" class="RelatedArticle"><span data-testid="related-article-title" class="RelatedArticle-Title">Related:</span><a class="RelatedArticle-RelatedContent" href="/data-center-career-development/the-cloud-talent-crisis-skills-shortage-drives-up-costs-risks" target="_self" data-discover="true">The Cloud Talent Crisis: Skills Shortage Drives Up Costs, Risks</a></p><p class="ContentParagraph ContentParagraph_align_left" data-testid="content-paragraph"><span class="ContentText ContentText_variant_bodyNormal" data-testid="content-text"><span class="ContentText-BodyTextChunk ContentText-BodyTextChunk_bold">No upfront cost:</span></span><span class="ContentText ContentText_variant_bodyNormal" data-testid="content-text"> AI accelerators are typically pricey to purchase outright, with costs ranging from a few hundred dollars for a basic GPU to many tens of thousands of dollars for high-end GPUs and NPUs. Cloud-based accelerators allow companies to use AI hardware without having to pay for these devices upfront. Instead, they essentially rent them through an AI IaaS service.</span></p><p class="ContentParagraph ContentParagraph_align_left" data-testid="content-paragraph"><span class="ContentText ContentText_variant_bodyNormal" data-testid="content-text"><span class="ContentText-BodyTextChunk ContentText-BodyTextChunk_bold">Pay for what you use:</span></span><span class="ContentText ContentText_variant_bodyNormal" data-testid="content-text"> Along similar lines, cloud AI hardware lets users pay only for the hardware capacity they use. This is especially beneficial if you only need AI hardware for temporary tasks, like model training.</span></p><p class="ContentParagraph ContentParagraph_align_left" data-testid="content-paragraph"><span class="ContentText ContentText_variant_bodyNormal" data-testid="content-text"><span class="ContentText-BodyTextChunk ContentText-BodyTextChunk_bold">Access to specialized AI hardware:</span></span><span class="ContentText ContentText_variant_bodyNormal" data-testid="content-text"> Some types of AI accelerators are only available through the cloud. For instance, you can't purchase the AI chips developed by Amazon and Google for use in your own servers. You have to use cloud services to access them.</span></p><p class="ContentParagraph ContentParagraph_align_left" data-testid="content-paragraph"><span class="ContentText ContentText_variant_bodyNormal" data-testid="content-text"><span class="ContentText-BodyTextChunk ContentText-BodyTextChunk_bold">Scalability:</span></span><span class="ContentText ContentText_variant_bodyNormal" data-testid="content-text"> Like most cloud-based solutions, cloud AI hardware is very scalable. You can easily add more AI server instances if you need more processing power. This isn't the case with on-prem AI hardware, which is costly and complicated to scale up.</span></p><h2 class="ContentText ContentText_variant_h2 ContentText_align_left" data-testid="content-text" id="The Drawbacks of AI Hardware in the Cloud" style="scroll-margin-top:10rem;scroll-snap-margin-top:10rem"><span class="ContentText-BodyTextChunk ContentText-BodyTextChunk_bold">The Drawbacks of AI Hardware in the Cloud</span></h2><p class="ContentParagraph ContentParagraph_align_left" data-testid="content-paragraph"><span class="ContentText ContentText_variant_bodyNormal" data-testid="content-text">On the other hand, cloud-based AI hardware can present some notable challenges:</span></p><p class="ContentParagraph ContentParagraph_align_left" data-testid="content-paragraph"><span class="ContentText ContentText_variant_bodyNormal" data-testid="content-text"><span class="ContentText-BodyTextChunk ContentText-BodyTextChunk_bold">Performance limitations:</span></span><span class="ContentText ContentText_variant_bodyNormal" data-testid="content-text"> Cloud-based AI workloads sometimes may not perform as well as those running on-prem due to the sharing of server hardware with other customers, as well as the potential for network latency when moving data into and out of the cloud.</span></p><p data-component="related-article" class="RelatedArticle"><span data-testid="related-article-title" class="RelatedArticle-Title">Related:</span><a class="RelatedArticle-RelatedContent" href="/next-gen-data-centers/creating-the-next-generation-cloud-with-software-defined-app-services" target="_self" data-discover="true">Creating the Next-Generation Cloud with Software-Defined App Services</a></p><p class="ContentParagraph ContentParagraph_align_left" data-testid="content-paragraph"><span class="ContentText ContentText_variant_bodyNormal" data-testid="content-text"><span class="ContentText-BodyTextChunk ContentText-BodyTextChunk_bold">Data privacy:</span></span><span class="ContentText ContentText_variant_bodyNormal" data-testid="content-text"> You may need to work with highly sensitive data — if you're training a model using private information, for example. Since cloud-based AI requires you to store the data in a public cloud, this could increase the risk of accidentally exposing the data to third-party access.</span></p><p class="ContentParagraph ContentParagraph_align_left" data-testid="content-paragraph"><span class="ContentText ContentText_variant_bodyNormal" data-testid="content-text"><span class="ContentText-BodyTextChunk ContentText-BodyTextChunk_bold">Cost:</span></span><span class="ContentText ContentText_variant_bodyNormal" data-testid="content-text"> Although the upfront cost of cloud AI hardware is typically much lower than purchasing AI devices outright, your long-term costs could be higher, especially if you use the hardware extensively. In addition, cloud-based AI may require you to pay data egress fees, which don't apply on-prem.</span></p><p class="ContentParagraph ContentParagraph_align_left" data-testid="content-paragraph"></p><div class="Iframe"><iframe title="Embedded content" src="https://www.youtube.com/embed/BXLc6tnO920?si=jzUdomM6_lZ21gAU" height="315px" width="100%" allowFullScreen="" data-testid="iframe-video" loading="lazy"></iframe></div><h2 class="ContentText ContentText_variant_h2 ContentText_align_left" data-testid="content-text" id="When Are Cloud-Based AI Accelerators Worth It?" style="scroll-margin-top:10rem;scroll-snap-margin-top:10rem"><span class="ContentText-BodyTextChunk ContentText-BodyTextChunk_bold">When Are Cloud-Based AI Accelerators Worth It?</span></h2><p class="ContentParagraph ContentParagraph_align_left" data-testid="content-paragraph"><span class="ContentText ContentText_variant_bodyNormal" data-testid="content-text">So, should you use cloud-based AI accelerators?</span></p><p class="ContentParagraph ContentParagraph_align_left" data-testid="content-paragraph"><span class="ContentText ContentText_variant_bodyNormal" data-testid="content-text">The answer boils down to which type of AI hardware you need and what you intend to use it for. If you'll be deploying AI workloads on an ongoing basis, purchasing your own hardware could make more sense. Likewise, on-prem AI is more feasible if you need less expensive devices.</span></p><p class="ContentParagraph ContentParagraph_align_left" data-testid="content-paragraph"><span class="ContentText ContentText_variant_bodyNormal" data-testid="content-text">But for workloads that require highly specialized AI hardware, and/or workloads that will only operate on a temporary basis, the cloud is likely to be a better solution than on-prem AI.</span></p></div></div><div class="ArticleBase-More" data-testid="article-base-more"><p class="ArticleBase-MoreTitle">Read more about:</p><a data-component="keyword" class="Keyword Keyword_variant_category-2 Keyword_title_itProToday ArticleBase-Keywords" href="/keyword/it-pro-today" data-discover="true">ITPro Today</a><a data-component="keyword" class="Keyword Keyword_variant_category-2 Keyword_title_technicalExplainer ArticleBase-Keywords" href="/keyword/technical-explainer" data-discover="true">Technical Explainer</a></div><div 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class="ArticleBase-ContributorsWrapper"><h2 class="ArticleBase-ContributorsTitle">About the Authors</h2><div class="ArticleBase-ContributorsSummary"><div data-component="contributor-summary" class="ContributorSummary ContributorSummary_variant_author"><div class="ContributorSummary-ImageWrapper ContributorSummary-ImageWrapper_variant_author"><a data-testid="contributor-summary-img-link" href="/author/christopher-tozzi" data-discover="true"><img data-component="image" class="ContributorSummary-Image ContributorSummary-Image_variant_author" data-src="https://eu-images.contentstack.com/v3/assets/blt8eb3cdfc1fce5194/bltb80c8a754e05f0af/6613d88533fe26f3ee4e5204/christophertozzi_2.jpg?width=400&auto=webp&quality=80&disable=upscale" src="https://eu-images.contentstack.com/v3/assets/blt8eb3cdfc1fce5194/bltb80c8a754e05f0af/6613d88533fe26f3ee4e5204/christophertozzi_2.jpg?width=400&auto=webp&quality=80&disable=upscale" loading="lazy" alt="Christopher Tozzi" title="Christopher Tozzi"/></a></div><div class="ContributorSummary-InfoWrapper ContributorSummary-InfoWrapper_variant_author"><div class="ContributorSummary-TitleWrapper"><a data-testid="contributor-summary-title-link" href="/author/christopher-tozzi" data-discover="true"><p class="ContributorSummary-Title ContributorSummary-Title_variant_author" data-testid="contributor-summary-title">Christopher Tozzi</p></a></div><div class="ContributorSummary-SubTitleWrapper ContributorSummary-SubTitleWrapper_variant_author"><p class="ContributorSummary-SubTitle ContributorSummary-SubTitle_variant_author" data-testid="contributor-summary-subtitle">Technology Analyst, Fixate.IO</p></div><div class="ContributorSummary-ContentWrapper ContributorSummary-ContentWrapper_variant_author"><div class="ContributorSummary-Content ContributorSummary-Content_variant_author" data-testid="contributor-summary-content"><p class="ContentParagraph ContentParagraph_align_left" data-testid="content-paragraph"><span class="ContentText ContentText_variant_bodyNoneStyle" data-testid="content-text">Christopher Tozzi is a technology analyst with subject matter expertise in cloud computing, application development, open source software, virtualization, containers and more. He also lectures at a major university in the Albany, New York, area. His book, “</span><span class="ContentText ContentText_variant_bodyNoneStyle" data-testid="content-text"><a class="ContentText-BodyTextChunk ContentText-BodyTextChunk_link" target="_blank" href="https://mitpress.mit.edu/books/fun-and-profit">For Fun and Profit: A History of the Free and Open Source Software Revolution</a></span><span class="ContentText ContentText_variant_bodyNoneStyle" data-testid="content-text">,” was published by MIT Press.</span></p></div></div></div><div class="ContributorSummary-SeeMore"><a data-component="button" class="Button Button_size_medium Button_variant_textLink" rel="" href="/author/christopher-tozzi" data-discover="true"><span class="Button-ContentWrapper"><span class="ContributorSummary-SeeMoreText"><span>See more from Christopher Tozzi</span><span data-component="icon" data-name="ChevronRight" class="ContributorSummary-SeeMoreIcon" style="mask-image:url("data:image/svg+xml,%3csvg%20xmlns='http://www.w3.org/2000/svg'%20fill='currentColor'%20width='13'%20height='21'%20viewBox='0%200%2013%2021'%3e%3cpath%20id='Icon_awesome-chevron-right'%20data-name='Icon%20awesome-chevron-right'%20d='M12.655,11.316,3.122,20.662a1.194,1.194,0,0,1-1.665,0L.345,19.572a1.138,1.138,0,0,1,0-1.63L7.9,10.5.343,3.058a1.138,1.138,0,0,1,0-1.63L1.457.338a1.194,1.194,0,0,1,1.665,0l9.533,9.346A1.138,1.138,0,0,1,12.655,11.316Z'/%3e%3c/svg%3e");-webkit-mask-image:url("data:image/svg+xml,%3csvg%20xmlns='http://www.w3.org/2000/svg'%20fill='currentColor'%20width='13'%20height='21'%20viewBox='0%200%2013%2021'%3e%3cpath%20id='Icon_awesome-chevron-right'%20data-name='Icon%20awesome-chevron-right'%20d='M12.655,11.316,3.122,20.662a1.194,1.194,0,0,1-1.665,0L.345,19.572a1.138,1.138,0,0,1,0-1.63L7.9,10.5.343,3.058a1.138,1.138,0,0,1,0-1.63L1.457.338a1.194,1.194,0,0,1,1.665,0l9.533,9.346A1.138,1.138,0,0,1,12.655,11.316Z'/%3e%3c/svg%3e");mask-repeat:no-repeat;-webkit-mask-repeat:no-repeat;-webkit-mask-position:center;-webkit-mask-size:contain"></span></span></span></a></div></div><div data-component="contributor-summary" class="ContributorSummary ContributorSummary_variant_author"><div class="ContributorSummary-ImageWrapper ContributorSummary-ImageWrapper_variant_author"><a data-testid="contributor-summary-img-link" href="/author/it-pro-today" data-discover="true"><img data-component="image" class="ContributorSummary-Image ContributorSummary-Image_variant_author" data-src="https://eu-images.contentstack.com/v3/assets/blt8eb3cdfc1fce5194/blt20256feca45e59f9/6647102a1bf9d635ca0389ed/ITP_ContributorPlaceholder.png?width=400&auto=webp&quality=80&disable=upscale" src="https://eu-images.contentstack.com/v3/assets/blt8eb3cdfc1fce5194/blt20256feca45e59f9/6647102a1bf9d635ca0389ed/ITP_ContributorPlaceholder.png?width=400&auto=webp&quality=80&disable=upscale" loading="lazy" alt="ITPro Today" title="ITPro Today"/></a></div><div class="ContributorSummary-InfoWrapper ContributorSummary-InfoWrapper_variant_author"><div class="ContributorSummary-TitleWrapper"><a data-testid="contributor-summary-title-link" href="/author/it-pro-today" data-discover="true"><p class="ContributorSummary-Title ContributorSummary-Title_variant_author" data-testid="contributor-summary-title">ITPro Today</p></a></div><div class="ContributorSummary-SubTitleWrapper ContributorSummary-SubTitleWrapper_variant_author"><p class="ContributorSummary-SubTitle ContributorSummary-SubTitle_variant_author" data-testid="contributor-summary-subtitle"></p></div><div class="ContributorSummary-ContentWrapper ContributorSummary-ContentWrapper_variant_author"><div class="ContributorSummary-Content ContributorSummary-Content_variant_author" data-testid="contributor-summary-content"><p class="ContentParagraph ContentParagraph_align_left" data-testid="content-paragraph"><span class="ContentText ContentText_variant_bodyNoneStyle" data-testid="content-text"><a class="ContentText-BodyTextChunk ContentText-BodyTextChunk_link" target="_blank" href="http://www.itprotoday.com/">ITPro Today</a></span><span class="ContentText ContentText_variant_bodyNoneStyle" data-testid="content-text">, a sister site to Data Center Knowledge, is a leading online source of daily news, analysis and how-to’s about the information technology industry. 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Up\",\"eln\",\"iirisRecommendation\",{\"_779\":780,\"_781\":782,\"_783\":784,\"_785\":786,\"_787\":159,\"_788\":159,\"_789\":790,\"_791\":792,\"_793\":794,\"_795\":194,\"_796\":797,\"_798\":799,\"_800\":801,\"_802\":803,\"_804\":805,\"_806\":807},\"id\",\"widget-1717150900358\",\"division\",\"it\",\"brandFamily\",\"enterpriseit\",\"entityTagBackground\",\"#333333BF\",\"showBy\",\"showTime\",\"borderRadius\",\"4\",\"imageWidth\",\"324\",\"imageHeight\",\"182\",\"imagePosition\",\"dropShadow\",\"#FFEB00\",\"entityTagBorderColor\",\"#333333\",\"borderColor\",\"#e6e6e6\",\"redirectMode\",\"same\",\"recipe\",\"related-items\",\"brandName\",\"datacknowledge\",\"articleSocialShareToggle\",{\"_810\":26,\"_811\":26,\"_812\":26},\"print\",\"email\",\"reddit\",\"routes/$topic.$slug._index\",{\"_815\":24,\"_816\":-7,\"_817\":778,\"_818\":24,\"_819\":24,\"_820\":821,\"_903\":904,\"_1489\":1490,\"_1521\":1522,\"_1534\":1535,\"_1580\":1581,\"_1586\":24},\"isRequestedByGoogleBot\",\"weatherWidgetConfig\",\"iirisRecommendationConfig\",\"isUserEntitled\",\"isGatedAsPaid\",\"metadata\",{\"_88\":822,\"_823\":824,\"_825\":826,\"_827\":12,\"_828\":829,\"_846\":847,\"_848\":849,\"_724\":850,\"_899\":24,\"_900\":24,\"_901\":24,\"_902\":159},\"article\",\"uid\",\"blt1d3a9ff9cfe5b8af\",\"aid\",\"778702\",\"reg\",\"pterm\",{\"_830\":270,\"_831\":832,\"_833\":834,\"_835\":836},\"main\",\"parent\",\"Operations \u0026 Management\",\"grandparent\",{\"_112\":159},\"additional\",[837,843],{\"_88\":838,\"_112\":172,\"_59\":174,\"_839\":840},\"TopicSecondary\",\"parentTopic\",{\"_88\":841,\"_112\":842},\"TopicPrimary\",\"Next-Gen Data Centers\",{\"_88\":838,\"_112\":844,\"_59\":141,\"_839\":845},\"Data Center Hardware\",{\"_88\":841,\"_112\":132},\"contentFormat\",\"Research\",\"buyersJourney\",\"awareness\",[851,884],{\"_112\":309,\"_57\":309,\"_852\":853,\"_854\":855,\"_183\":311,\"_181\":310,\"_856\":857,\"_858\":859},\"companyName\",\"Fixate.IO\",\"role\",\"Technology Analyst\",\"tagLine\",\"Technology Analyst, Fixate.IO\",\"summary\",[860],{\"_88\":861,\"_862\":863,\"_866\":867},\"paragraph\",\"attrs\",{\"_864\":865},\"textAlign\",\"left\",\"content\",[868,871,882],{\"_88\":869,\"_869\":870},\"text\",\"Christopher Tozzi is a technology analyst with subject matter expertise in cloud computing, application development, open source software, virtualization, containers and more. He also lectures at a major university in the Albany, New York, area. His book, “\",{\"_88\":869,\"_872\":873,\"_869\":881},\"marks\",[874],{\"_88\":181,\"_862\":875},{\"_5\":876,\"_877\":878,\"_879\":-5,\"_880\":-5},\"https://mitpress.mit.edu/books/fun-and-profit\",\"target\",\"_blank\",\"rel\",\"class\",\"For Fun and Profit: A History of the Free and Open Source Software Revolution\",{\"_88\":869,\"_869\":883},\",” was published by MIT Press.\",{\"_112\":601,\"_57\":601,\"_852\":159,\"_854\":159,\"_183\":885,\"_181\":886,\"_856\":159,\"_858\":887},\"https://eu-images.contentstack.com/v3/assets/blt8eb3cdfc1fce5194/blt20256feca45e59f9/6647102a1bf9d635ca0389ed/ITP_ContributorPlaceholder.png\",\"/author/it-pro-today\",[888],{\"_88\":861,\"_862\":889,\"_866\":890},{\"_864\":865},[891,897],{\"_88\":869,\"_872\":892,\"_869\":601},[893],{\"_88\":181,\"_862\":894},{\"_5\":895,\"_877\":896,\"_879\":-5,\"_880\":-5},\"http://www.itprotoday.com/\",\"_self\",{\"_88\":869,\"_869\":898},\", a sister site to Data Center Knowledge, is a leading online source of daily news, analysis and how-to’s about the information technology industry. We help IT professionals and technology stakeholders learn about, assess and manage the acquisition of next-gen technology that drives business innovation, including — but not limited to — analytics, artificial intelligence/machine learning, cloud computing, compute engines, containers, data center operations, edge computing, hyper-converged infrastructure, the mobile-first workplace, security, software development and DevOps, storage, and the Internet of Things.\",\"gatedWithExternalForm\",\"gatedWithSiteReg\",\"paidGating\",\"sponsorName\",\"template\",{\"_905\":906,\"_910\":911,\"_69\":-5,\"_919\":920,\"_858\":921,\"_112\":922,\"_162\":922,\"_923\":159,\"_924\":159,\"_925\":159,\"_848\":849,\"_177\":850,\"_926\":190,\"_927\":-7,\"_928\":929,\"_937\":-7,\"_938\":-7,\"_939\":940,\"_955\":956,\"_957\":958,\"_964\":965,\"_966\":967,\"_175\":176,\"_823\":824,\"_1224\":1225,\"_1232\":1233,\"_846\":1239,\"_1240\":1241,\"_1242\":1243,\"_1244\":1245,\"_1464\":1465,\"_1466\":1467,\"_1472\":1473,\"_901\":1474,\"_1477\":1478,\"_1484\":1485,\"_819\":24},\"breadcrumbs\",[907,909],{\"_59\":908,\"_112\":680},\"/\",{\"_59\":271,\"_112\":270},\"topics\",[912,915,917],{\"_913\":838,\"_112\":270,\"_59\":271,\"_839\":914},\"__typename\",{\"_112\":832},{\"_913\":838,\"_112\":172,\"_59\":174,\"_839\":916},{\"_112\":842},{\"_913\":838,\"_112\":844,\"_59\":141,\"_839\":918},{\"_112\":132},\"searchParams\",{},\"Know the pros and cons of cloud-based AI accelerators before deciding whether cloud or on-prem AI hardware aligns best with your workload requirements.\",\"Cloud vs. On-Prem AI Accelerators: Choosing the Best Fit for Your AI Workloads\",\"authoredBy\",\"authoredOn\",\"oldUrl\",\"readTime\",\"panelsModule\",\"newsletterSignUpPromo\",{\"_112\":930,\"_773\":931,\"_932\":933,\"_774\":934,\"_191\":194,\"_935\":936},\"Subscribe to the Data Center Knowledge Newsletter\",\"Get analysis and expert insight on the latest in data center business and technology delivered to your inbox daily.\",\"newsletterId\",\"blt1e535db6f3d3256f\",\"Newsletter Sign-Up\",\"mode\",\"dark\",\"resourcesModule\",\"embedModule\",\"socialShare\",[941,943,945,947,950,953],{\"_88\":89,\"_59\":942},\"http://www.facebook.com/sharer/sharer.php?u=https://www.datacenterknowledge.com/cloud/cloud-vs-on-prem-ai-accelerators-choosing-the-best-fit-for-your-ai-workloads\",{\"_88\":95,\"_59\":944},\"https://www.linkedin.com/sharing/share-offsite/?url=https://www.datacenterknowledge.com/cloud/cloud-vs-on-prem-ai-accelerators-choosing-the-best-fit-for-your-ai-workloads\",{\"_88\":92,\"_59\":946},\"http://www.twitter.com/intent/tweet?url=https://www.datacenterknowledge.com/cloud/cloud-vs-on-prem-ai-accelerators-choosing-the-best-fit-for-your-ai-workloads\",{\"_88\":948,\"_59\":949},\"Reddit\",\"https://www.reddit.com/submit?url=https://www.datacenterknowledge.com/cloud/cloud-vs-on-prem-ai-accelerators-choosing-the-best-fit-for-your-ai-workloads\u0026title=Cloud%20vs.%20On-Prem%20AI%20Accelerators%3A%20Choosing%20the%20Best%20Fit%20for%20Your%20AI%20Workloads\",{\"_88\":951,\"_59\":952},\"Email\",\"mailto:?subject=Cloud vs. On-Prem AI Accelerators: Choosing the Best Fit for Your AI Workloads\u0026body=I%20thought%20the%20following%20from%20DataCenterKnowledge%20might%20interest%20you.%0D%0A%0D%0A%20Cloud%20vs.%20On-Prem%20AI%20Accelerators%3A%20Choosing%20the%20Best%20Fit%20for%20Your%20AI%20Workloads%0D%0Ahttps%3A%2F%2Fwww.datacenterknowledge.com%2Fcloud%2Fcloud-vs-on-prem-ai-accelerators-choosing-the-best-fit-for-your-ai-workloads\",{\"_88\":954,\"_59\":908},\"Print\",\"publishedDate\",\"2024-11-18T09:53:16.000Z\",\"keywords\",[959,961],{\"_59\":960,\"_112\":601},\"/keyword/it-pro-today\",{\"_59\":962,\"_112\":963},\"/keyword/technical-explainer\",\"Technical Explainer\",\"atAGlance\",[],\"bodyJson\",[968,981,986,991,995,1005,1010,1021,1023,1028,1030,1037,1044,1057,1062,1075,1086,1093,1098,1103,1112,1121,1130,1139,1141,1148,1153,1162,1167,1176,1185,1187,1202,1209,1214,1219],{\"_88\":861,\"_862\":969,\"_866\":970},{\"_864\":865},[971,973,979],{\"_88\":869,\"_869\":972},\"AI accelerators — meaning specialized hardware devices that are adept at supporting \",{\"_88\":869,\"_872\":974,\"_869\":978},[975],{\"_88\":181,\"_862\":976},{\"_5\":977,\"_877\":896,\"_879\":-5,\"_880\":-5},\"https://www.itprotoday.com/ai-machine-learning/ai-basics-a-quick-reference-guide-for-it-professionals\",\"artificial intelligence\",{\"_88\":869,\"_869\":980},\" workloads — tend to be expensive to purchase and operate on your own.\",{\"_88\":861,\"_862\":982,\"_866\":983},{\"_864\":865},[984],{\"_88\":869,\"_869\":985},\"That may make cloud-based AI accelerators seem like the perfect solution. Rather than having to buy your own AI hardware, why not just \\\"rent\\\" it from a cloud provider using an AI infrastructure-as-a-service (IaaS) model?\",{\"_88\":861,\"_862\":987,\"_866\":988},{\"_864\":865},[989],{\"_88\":869,\"_869\":990},\"In many cases, this approach is indeed preferable. But it also comes with some drawbacks. Read on for guidance on deciding whether cloud-based AI hardware is right for you.\",{\"_88\":992,\"_993\":994},\"ad\",\"pos\",\"300_1v_article\",{\"_88\":996,\"_862\":997,\"_866\":999},\"heading\",{\"_864\":865,\"_998\":349},\"level\",[1000],{\"_88\":869,\"_872\":1001,\"_869\":1004},[1002],{\"_88\":1003},\"bold\",\"What Are AI Accelerators and AI Hardware?\",{\"_88\":861,\"_862\":1006,\"_866\":1007},{\"_864\":865},[1008],{\"_88\":869,\"_869\":1009},\"The terms \\\"AI accelerator\\\" and \\\"AI hardware\\\" refer to hardware devices that excel at AI tasks like model training and inference. In other words, they're devices other than generic computer processing units (CPUs), which can handle many types of AI workloads but which aren't particularly fast or efficient when working with AI.\",{\"_88\":861,\"_862\":1011,\"_866\":1012},{\"_864\":865},[1013,1019],{\"_88\":869,\"_872\":1014,\"_869\":1018},[1015],{\"_88\":181,\"_862\":1016},{\"_5\":1017,\"_877\":896,\"_879\":-5,\"_880\":-5},\"https://www.itprotoday.com/high-performance-computing/gpu-costs-aren-t-infinitely-scalable-what-can-be-done-\",\"Graphical processing units\",{\"_88\":869,\"_869\":1020},\" (GPUs) are one example of AI hardware. They're good for many types of AI workloads because they have a high core count, which allows them to process lots of data in parallel.\",{\"_88\":992,\"_993\":1022},\"native_1v\",{\"_88\":861,\"_862\":1024,\"_866\":1025},{\"_864\":865},[1026],{\"_88\":869,\"_869\":1027},\"But GPUs aren't the only type of AI accelerator. Other options include neutral processing units (NPUs), which are designed specifically for large-scale parallel computing for AI applications (whereas GPUs are designed mainly for rendering video but happen to be useful for certain AI tasks as well). Application-specific integrated chips (ASICs) and field programmable gate arrays (FGPAs) can also be good options for some AI workloads, such as processing data very quickly.\",{\"_88\":992,\"_993\":1029},\"video_v\",{\"_88\":1031,\"_866\":1032,\"_112\":1036},\"relatedArticle\",[1033],{\"_112\":1034,\"_59\":1035,\"_877\":896},\"AI Accelerated Servers Fuel Growth in Data Center Spending\",\"/servers/ai-accelerated-servers-fuel-growth-in-data-center-spending\",\"Related\",{\"_88\":996,\"_862\":1038,\"_866\":1039},{\"_864\":865,\"_998\":349},[1040],{\"_88\":869,\"_872\":1041,\"_869\":1043},[1042],{\"_88\":1003},\"On-Prem vs. Cloud-Based AI Hardware\",{\"_88\":861,\"_862\":1045,\"_866\":1046},{\"_864\":865},[1047,1049,1055],{\"_88\":869,\"_869\":1048},\"Like most types of hardware, AI accelerators can run either \",{\"_88\":869,\"_872\":1050,\"_869\":1054},[1051],{\"_88\":181,\"_862\":1052},{\"_5\":1053,\"_877\":896,\"_879\":-5,\"_880\":-5},\"https://www.itprotoday.com/cloud-computing/4-reasons-to-choose-on-premise-vs-cloud-for-modern-workloads\",\"on-prem or in the cloud\",{\"_88\":869,\"_869\":1056},\".\",{\"_88\":861,\"_862\":1058,\"_866\":1059},{\"_864\":865},[1060],{\"_88\":869,\"_869\":1061},\"An on-prem accelerator is one that you install in servers you manage yourself. This requires you to purchase the accelerator and a server capable of hosting it, set them up, and manage them on an ongoing basis.\",{\"_88\":861,\"_862\":1063,\"_866\":1064},{\"_864\":865},[1065,1067,1073],{\"_88\":869,\"_869\":1066},\"A cloud-based accelerator is one that a cloud vendor makes available to customers over the internet using an IaaS model. Typically, to access a cloud-based accelerator, you'd choose a cloud server instance designed for AI. For example, \",{\"_88\":869,\"_872\":1068,\"_869\":1072},[1069],{\"_88\":181,\"_862\":1070},{\"_5\":1071,\"_877\":896,\"_879\":-5,\"_880\":-5},\"https://www.itprotoday.com/public-cloud/ai-drives-major-gains-for-big-3-cloud-giants-amazon-microsoft-google\",\"Amazon\",{\"_88\":869,\"_869\":1074},\" offers EC2 cloud server instances that feature its Trainium AI accelerator chip. Google Cloud offers Tensor Processing Units (TPUs), another type of AI accelerator, as one of its cloud server options.\",{\"_88\":861,\"_862\":1076,\"_866\":1077},{\"_864\":865},[1078],{\"_88\":641,\"_862\":1079},{\"_864\":865,\"_156\":1080,\"_158\":1081,\"_112\":-5,\"_1082\":1083},\"https://eu-images.contentstack.com/v3/assets/blt07f68461ccd75245/blt1630c92f3d5abe79/673b15bd2202404b7ac00d90/Cloud-Based-AI-Accelerators.png\",\"chart showing the pros and cons of cloud-based AI accelerators\",\"style\",{\"_1084\":1085},\"float\",\"center\",{\"_88\":996,\"_862\":1087,\"_866\":1088},{\"_864\":865,\"_998\":349},[1089],{\"_88\":869,\"_872\":1090,\"_869\":1092},[1091],{\"_88\":1003},\"The Benefits of Cloud AI Accelerators\",{\"_88\":861,\"_862\":1094,\"_866\":1095},{\"_864\":865},[1096],{\"_88\":869,\"_869\":1097},\"Why would you opt for a cloud-based accelerator instead of running one locally? The main benefits include:\",{\"_88\":1031,\"_866\":1099,\"_112\":1036},[1100],{\"_112\":1101,\"_59\":1102,\"_877\":896},\"The Cloud Talent Crisis: Skills Shortage Drives Up Costs, Risks\",\"/data-center-career-development/the-cloud-talent-crisis-skills-shortage-drives-up-costs-risks\",{\"_88\":861,\"_862\":1104,\"_866\":1105},{\"_864\":865},[1106,1110],{\"_88\":869,\"_872\":1107,\"_869\":1109},[1108],{\"_88\":1003},\"No upfront cost:\",{\"_88\":869,\"_869\":1111},\" AI accelerators are typically pricey to purchase outright, with costs ranging from a few hundred dollars for a basic GPU to many tens of thousands of dollars for high-end GPUs and NPUs. Cloud-based accelerators allow companies to use AI hardware without having to pay for these devices upfront. Instead, they essentially rent them through an AI IaaS service.\",{\"_88\":861,\"_862\":1113,\"_866\":1114},{\"_864\":865},[1115,1119],{\"_88\":869,\"_872\":1116,\"_869\":1118},[1117],{\"_88\":1003},\"Pay for what you use:\",{\"_88\":869,\"_869\":1120},\" Along similar lines, cloud AI hardware lets users pay only for the hardware capacity they use. This is especially beneficial if you only need AI hardware for temporary tasks, like model training.\",{\"_88\":861,\"_862\":1122,\"_866\":1123},{\"_864\":865},[1124,1128],{\"_88\":869,\"_872\":1125,\"_869\":1127},[1126],{\"_88\":1003},\"Access to specialized AI hardware:\",{\"_88\":869,\"_869\":1129},\" Some types of AI accelerators are only available through the cloud. For instance, you can't purchase the AI chips developed by Amazon and Google for use in your own servers. You have to use cloud services to access them.\",{\"_88\":861,\"_862\":1131,\"_866\":1132},{\"_864\":865},[1133,1137],{\"_88\":869,\"_872\":1134,\"_869\":1136},[1135],{\"_88\":1003},\"Scalability:\",{\"_88\":869,\"_869\":1138},\" Like most cloud-based solutions, cloud AI hardware is very scalable. You can easily add more AI server instances if you need more processing power. This isn't the case with on-prem AI hardware, which is costly and complicated to scale up.\",{\"_88\":992,\"_993\":1140},\"native_2v\",{\"_88\":996,\"_862\":1142,\"_866\":1143},{\"_864\":865,\"_998\":349},[1144],{\"_88\":869,\"_872\":1145,\"_869\":1147},[1146],{\"_88\":1003},\"The Drawbacks of AI Hardware in the Cloud\",{\"_88\":861,\"_862\":1149,\"_866\":1150},{\"_864\":865},[1151],{\"_88\":869,\"_869\":1152},\"On the other hand, cloud-based AI hardware can present some notable challenges:\",{\"_88\":861,\"_862\":1154,\"_866\":1155},{\"_864\":865},[1156,1160],{\"_88\":869,\"_872\":1157,\"_869\":1159},[1158],{\"_88\":1003},\"Performance limitations:\",{\"_88\":869,\"_869\":1161},\" Cloud-based AI workloads sometimes may not perform as well as those running on-prem due to the sharing of server hardware with other customers, as well as the potential for network latency when moving data into and out of the cloud.\",{\"_88\":1031,\"_866\":1163,\"_112\":1036},[1164],{\"_112\":1165,\"_59\":1166,\"_877\":896},\"Creating the Next-Generation Cloud with Software-Defined App Services\",\"/next-gen-data-centers/creating-the-next-generation-cloud-with-software-defined-app-services\",{\"_88\":861,\"_862\":1168,\"_866\":1169},{\"_864\":865},[1170,1174],{\"_88\":869,\"_872\":1171,\"_869\":1173},[1172],{\"_88\":1003},\"Data privacy:\",{\"_88\":869,\"_869\":1175},\" You may need to work with highly sensitive data — if you're training a model using private information, for example. Since cloud-based AI requires you to store the data in a public cloud, this could increase the risk of accidentally exposing the data to third-party access.\",{\"_88\":861,\"_862\":1177,\"_866\":1178},{\"_864\":865},[1179,1183],{\"_88\":869,\"_872\":1180,\"_869\":1182},[1181],{\"_88\":1003},\"Cost:\",{\"_88\":869,\"_869\":1184},\" Although the upfront cost of cloud AI hardware is typically much lower than purchasing AI devices outright, your long-term costs could be higher, especially if you use the hardware extensively. In addition, cloud-based AI may require you to pay data egress fees, which don't apply on-prem.\",{\"_88\":861,\"_862\":1186},{\"_864\":865},{\"_88\":1188,\"_862\":1189},\"iframe\",{\"_1190\":1191,\"_1192\":1193,\"_1194\":-5,\"_1195\":1196,\"_1197\":1198,\"_156\":1199,\"_1200\":1201},\"width\",\"100%\",\"height\",\"315px\",\"scrolling\",\"frameBorder\",\"0\",\"allow\",\"accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share\",\"https://www.youtube.com/embed/BXLc6tnO920?si=jzUdomM6_lZ21gAU\",\"loading\",\"lazy\",{\"_88\":996,\"_862\":1203,\"_866\":1204},{\"_864\":865,\"_998\":349},[1205],{\"_88\":869,\"_872\":1206,\"_869\":1208},[1207],{\"_88\":1003},\"When Are Cloud-Based AI Accelerators Worth It?\",{\"_88\":861,\"_862\":1210,\"_866\":1211},{\"_864\":865},[1212],{\"_88\":869,\"_869\":1213},\"So, should you use cloud-based AI accelerators?\",{\"_88\":861,\"_862\":1215,\"_866\":1216},{\"_864\":865},[1217],{\"_88\":869,\"_869\":1218},\"The answer boils down to which type of AI hardware you need and what you intend to use it for. If you'll be deploying AI workloads on an ongoing basis, purchasing your own hardware could make more sense. Likewise, on-prem AI is more feasible if you need less expensive devices.\",{\"_88\":861,\"_862\":1220,\"_866\":1221},{\"_864\":865},[1222],{\"_88\":869,\"_869\":1223},\"But for workloads that require highly specialized AI hardware, and/or workloads that will only operate on a temporary basis, the cloud is likely to be a better solution than on-prem AI.\",\"sponsored\",{\"_675\":159,\"_59\":159,\"_158\":159,\"_112\":159,\"_1226\":159,\"_1227\":24,\"_1228\":24,\"_1229\":1230,\"_1231\":159},\"campaignURL\",\"isSponsored\",\"gateWithSiteReg\",\"gateWithExternalForm\",\"None\",\"externalFormID\",\"featuredImage\",{\"_156\":1234,\"_158\":1235,\"_1236\":159,\"_1237\":1238},\"https://eu-images.contentstack.com/v3/assets/blt8eb3cdfc1fce5194/blt251b35edd1b27ec1/673e3f1cfc6a3a41d70aaf50/AI-chip-1716x965_-_2024-11-18.jpg\",\"AI 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