Originally published on LinkedIn:
https://www.linkedin.com/feed/update/urn:li:activity:7429470343347687425/
On‑prem is the king again (but SaaS might not be dead yet).
Agentic AI changes the unit economics. When you go from “one prompt” to “many agents” (plan → act → verify → retry, tool calls, context retrieval), token burn becomes a real line item.
That’s why on‑prem is back:
- Predictable cost for high-volume inference
- Lower latency near data and systems
- Stronger control over data residency and governance
But SaaS still wins where it always has:
- Commodity capabilities (CRM core, case management, standard workflows)
- Caster release cycles and managed security
- Lower operational burden
The real move isn’t a religious migration. It’s workload placement:
- SaaS for the system of record
- On‑prem for the AI runtime when volume, sensitivity and predictability demand it
- Hybrid for burst and specialized models
New KPI to keep everyone honest: cost per completed business outcome, not cost per token.
#AI #AgenticAI #EnterpriseArchitecture #HybridCloud #SaaS #FinOps #LLMOps