Press Release
Minneapolis, MN, Sep 7, 2025 — Nor-Tech, a leading systems integrator of high-performance computing (HPC) solutions, continues to demonstrate the inherent advantages of on-premise HPC compared to cloud-based alternatives. These advantages include:
– Relatively poor GPU training time of public cloud due to slower networks and separated server clusters.
– Limited public cloud GPU availability.
– Relative expense of public cloud with respect to reserved instance utilization or significantly higher on-demand pricing. Cloud is typically 40-50% more expensive than on prem.
– Security, time and cost of moving data to and from the public cloud.
– Mindful of the pay-as-you-go model, data scientists tend to experiment less while using cloud-based AI, reducing model accuracy.
– With cloud, LLM inference is expensive and needs centralized testing and planning to be cost effective.
– With on prem, organizations have the ability to train on their own proprietary data and develop a model they then own.
– On prem avoids a single cloud lock in and creates leverage to negotiate.
– Cloud software stacks are proprietary to each cloud. A third-party software stack on-prem, will work with most cloud vendor solutions–enabling true AI model portability.
Nor-Tech Executive Vice President Jeff Olson said, “For organizations that want all of the competitive advantages that AI has to offer, it makes more sense to go with an on-prem high-performance solution for many reasons. We have an excellent track record of delivering systems capable of fully optimizing the best AI-related hardware and software on the market today.”
As one of the most respected names in the HPC industry, Nor-Tech has built its reputation on delivering turnkey solutions that are fully tested, validated and ready to deploy. By combining deep expertise in AI infrastructure with proven integration processes, Nor-Tech enables organizations to accelerate discovery, reduce costs and maintain complete control over their most valuable data and intellectual property.
To contact Nor-Tech call 952-808-1000 or visit https://www.nor-tech.com.
