On-Prem LLM vs API: When to Self-Host Your Language Models
API-based LLMs are fast to adopt but scale poorly on cost, latency, and data control. On-prem LLMs trade setup effort for predictable economics, lower per-token cost at volume, and data that never leaves your boundary. This guide breaks down the decision across cost, latency, privacy, compliance, and operational effort — and when each path is the right call.