Why on-premises AI is the secure future for compliant businesses
AI is changing everything—but are you in control of your data while staying compliant?
As new regulations like the AI Act come into force, the smartest companies are rethinking their infrastructure and choosing on-premises AI to stay secure, cost-effective, and future-ready. Continue reading to find out more!
Table of contents
Balancing AI innovation with data security and compliance
Take control of your AI future with secure on-premises deployment
The rise of on-prem AI
Open-source AI goes on-premises
Dell says on-prem is the future of AI
Security and data ownership reshaping AI deployment strategies
Balancing AI innovation with data security and compliance
Are you excited by the potential of AI but concerned about where your sensitive data will reside? But there's still one major concern—how to actually use AI in a way that keeps your valuable data secure and fully under your control.
Keep in mind that most organisations are affected by the AI Act, as they’re accountable for both the AI they create and the AI embedded in tools they already use. With enforcement beginning in November 2024, businesses could face fines up to €35 million or 7% of global turnover if they fail to meet the Act’s requirements.
The AI Act came into force on 1 August 2024 and will apply fully from 2 August 2026, with some exceptions.
Timeline of the AI Act
According to Gartner, AI adoption falls into four main categories:
- AI in the wild – Public AI tools used by employees, often without oversight (e.g. ChatGPT).
- Embedded AI – AI features built into enterprise software, often invisible (e.g. chatbot).
- AI in-house – AI developed and managed internally with full control over data and models.
- Hybrid AI – Combines external AI models with internal data for tailored enterprise use (e.g. Easy AI).
Where does your organisation truly stand on the AI adoption spectrum—and is that choice setting you up for compliance and control under the AI Act?
Take control of your AI future with secure on-premises deployment
Many organisations find that public cloud costs are higher than expected, especially with fluctuating usage and hidden fees like data egress.
To stay flexible and cost-effective, businesses are reassessing infrastructure needs, often combining on-prem solutions with public cloud, supported by FinOps practices. The rise of elastic, on-demand models now allows companies to choose the best-fit infrastructure without being locked into rigid contracts or overspending.
As Mindy Cancila, VP of corporate strategy at Dell Technologies, notes, on-premises infrastructure offers clear benefits in efficiency, simplicity, and financial flexibility.
Mindy Cancila
The rise of on-prem AI
For years, the cloud has been touted as the default destination for all things digital. But as businesses delve deeper into AI, a compelling alternative is gaining traction: on-premises AI deployments.
The resurgence of on-premises infrastructure isn't just about data locality. Many infosec teams harbour doubts about the visibility and transparency offered by public cloud providers regarding data security and access management for their most sensitive information.
In a world where data breaches are increasingly common and regulations like GDPR demand stringent data protection within geographical boundaries, maintaining control over your infrastructure offers a significant advantage. An on-premises environment provides the highest level of security by isolating critical IT operations and data storage from the outside internet.
Open-source AI goes on-premises
The landscape of AI has also shifted with the rise of open-source foundation models like Meta's Llama 3 and a multitude of options available on platforms like Hugging Face. These models can now be run within corporate data centres, making it easier and more cost-effective for companies to fine-tune them with their own data and build bespoke applications.
Importantly, as Meta themselves state, open-source models like Llama allow developers to fully customise them for their specific needs and run them in any environment, including AI on-premises, without the need to share data with the model provider.
Dell says on-prem is the future of AI
Dell, a leader in this space, has clearly articulated a vision where companies can harness the power of AI within the secure confines of their own data centres, or through a hybrid approach. This isn't a step backwards; it's a strategic move towards greater security, control, and cost-effectiveness.
“We believe the long-term AI action is on-prem, where customers can keep their data and intellectual property safe and secure,” Clarke said, COO of Dell.
Consider this: a staggering 83% of business data still resides within on-premises or co-located IT facilities. Doesn't it make sense to bring the AI to the data, rather than undertaking the complex and potentially risky task of moving vast datasets to the cloud?
Dell certainly thinks so, highlighting that "AI tracks to where the data is created, which is on-prem or out at the edge of the network".
Dell is making on-prem and hybrid AI possible with its "AI factory" concept—an infrastructure built for fine-tuning models, running inferencing, and building custom AI apps. It goes beyond hardware, covering services and devices essential to any AI strategy.
Building on this vision, Dell is achieving similar optimisations for on-prem systems—narrowing the gap with cloud capabilities. By supporting advanced Llama 3 features like real-time inference, fine-tuning, safety guardrails, and synthetic data generation, Dell proves that on-prem can now deliver the performance needed for advanced AI workloads, without compromising on control or security.
Security and data ownership reshaping AI deployment strategies
The landscape of AI deployment is evolving, with a clear trend towards on-premises and hybrid solutions driven by the need for enhanced security, greater control over data, and the increasing availability of open-source models.
As businesses strategically rebalance their cloud investments, the secure foundation offered by on-premises AI, championed by Dell, presents a smart and increasingly compelling path forward.
Ready to take control of your AI future with a secure, on-premises strategy? Don't compromise on security for the sake of AI innovation. With Easy Redmine, you can have both—as Easy Redmine runs the first AI on-premises and it was recognized by Yahoo Finance.
Contact us today to discuss how our on-premises solution can empower your business with the power of AI, securely within your control.
Frequently asked questions
Related articles
How to squeeze the maximum of RAG: How it works with AI
In the beginning was RAG, and RAG was with Knowledge, and RAG was Knowledge. Through RAG, all information was made accessible; without RAG, a query was answered completely. In RAG was the truth, and that truth became the light of artificial intelligence, shining in the darkness of uncertainty. And the models saw RAG, and they were enhanced.
No, just joking.
In the beginning, there was an idea to show our customers how RAG data sources work and stay secure, so they can see the real benefits of having up-to-date, reliable information that makes their projects run smoother. Curious? Read the article!
The first AI on-premises in project management software
Artificial intelligence (AI) has revolutionized various sectors, and project management is no exception. The emergence of on-premises AI project management software offers unique advantages distinguishing it from cloud-based solutions. Explores the uniqueness of Easy AI on-premises in project management and its benefits.
Secure your data in project management tool: Avoid AI era data leaks
In the dynamic realm of modern business, integrating Artificial Intelligence (AI) into project management platforms is not just a trend but a necessity for enhancing efficiency and driving productivity. Easy Redmine is at the forefront of this technological evolution, recognizing the paramount importance of safeguarding data security and encryption amidst the AI revolution.
The forthcoming Easy AI feature heralds a new era of secure, cloud-based, and on-premises project management solutions, ensuring that your sensitive data remains protected against the threat of data breaches.
