MICROSIVE

Hosted or self-hosted: choosing where your AI model runs

Where an AI model runs decides where your business data ends up.

Reviewed by: Rahul Jaiswar, founder

Side by side

Hosted APIHosted model in your cloud accountOpen model, one machineOpen model, GPU servers
Our pagesOpenAI, AnthropicClaude through a cloud platform (Anthropic)OllamaSelf-hosted LLM deployment
Where requests goThe provider’s serversA provider’s model offered inside your cloud account (for example Microsoft Foundry, Amazon Bedrock or Google Vertex AI), in a region you choose where it is availableYour machineGPU servers or serverless GPUs you rent
BillPer use, in foreign currencyPer use, on your cloud billHardware you buyGPU time; serverless scales down but cold-starts
UpkeepProvider runs the modelCloud provider runs the modelYou run one machineYou run a serving setup
SuitsQuick starts, hard language tasksHosted model quality, processed by your cloud provider in a region you choose, under your cloud contractPrivate data, small teamsMany users on one open model

Four questions that decide it

  1. May the data leave your systems? If contracts or customers rule out a public API, look at a provider’s model inside your own cloud account and region, or at an open model you host. For data that should stay in India, check which models your cloud provider offers in its Indian regions.
  2. How do the models do on your own examples? Collect real inputs (enquiries, call notes, documents) and compare setups on those. Public benchmarks won’t tell you how a model handles your inputs.
  3. How many people use it at once? A few staff through the day and a customer-facing feature need different hosting.
  4. Could you switch later? Keep model calls behind one layer of code, so a provider change touches little.

What running a self-hosted system involves

A self-hosted model or voice server is a system someone must update, monitor and restart when it fails. We deploy and host what we build, in an account you own, and you choose serverless or a managed server at the start. Cover after launch is the scoped, paid option: standard cover in business hours, with round-the-clock cover including emergencies as a paid upgrade, agreed in the scope of work (running it after launch). If nobody will hold that cover, a hosted option is often the better trade even at a higher usage bill.

What the model knows

A model answers from its training unless you give it context. Retrieval adds that context at question time (RAG).

Voice

A voice agent turns speech into input for a model and speaks its reply. We run the real-time voice layer on self-hosted LiveKit (LiveKit), and the voice agent service covers what those agents do (AI voice agents).

Where this meets our services

Model choice sits inside larger automation builds (AI automation), and inside integrations that connect AI steps to your existing systems (integrations). Where the answer is an open model on your own account, we choose it, build it and run it (self-hosted LLM deployment).

Weighing a hosted model against your own hardware?

Send one real example of the task and a line on where your data is allowed to go.