Local AI Models: LLaMA and Mistral On-Premise

When on-prem or VPC-local LLMs beat cloud inference, how to plan capacity and security, and hybrid routing patterns that scale.
Local AI models (e.g., LLaMA, Mistral) are attractive when sovereignty, residency, and predictable control matter.
Why local models
Drivers include data residency, internal SLA control, and long-term cost predictability for steady workloads.
Trade-offs
Self-hosting increases operational burden: scaling, patching, security hardening, and model lifecycle management.
Hybrid pattern
Many teams route sensitive workflows locally while using cloud models for edge cases, with one governance layer across both.
Conclusion
Local and cloud are complementary: choose routing by risk and workload, not ideology.
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