Source: SiliconANGLE
As companies move generative AI from experimentation to production systems, they're discovering that public cloud economics and governance models don't fit their needs—triggering a migration back to on-premises and private infrastructure. This reflects real constraints around latency, data residency, and cost control that become acute when AI models run continuously across mission-critical operations rather than serving occasional chatbot queries. The shift favors infrastructure vendors like Dell, HPE, and hyperscalers' private offerings, while exposing the cloud giants' earlier assumption that all enterprise workloads would eventually consolidate in their public regions.