Generative AI (GenAI) technology is paradigm-shifting, carrying with it the capability to completely reshape traditional patterns of human activity—from the most basic to the most innovative and creative. For many businesses of all sizes, there is little doubt that GenAI may transform significant aspects of their industry at every level—including management, operations, workflows, products, services, and more. GenAI’s potential is exciting, but when decision-makers need to figure out the best way for their organization to host and manage a GenAI workload, it can be challenging to accurately estimate total upfront and ongoing costs. To ensure a successful GenAI deployment, it’s vital to have a well-researched, objective understanding of the total cost of ownership (TCO) of each potential workload.
To provide businesses with a better understanding of the total costs of deploying and managing GenAI workloads, we calculated the approximate 4-year TCO of an on-premises Dell AI Factory solution with PowerEdge R660 and PowerEdge XE9680 server hardware using two different payment options—a traditional capital expenditure (CAPEX) solution and a Dell APEX Subscriptions solution. We also looked at the 4-year TCO of two similar cloud-based GenAI solutions from Amazon Web Services (AWS) SageMaker and Microsoft Azure Machine Learning.
Our research showed that the 4-year TCO of each of the Dell AI Factory solutions was significantly lower than either of the AWS or Azure solutions. The on-premises solution with no subscription (CAPEX model) would reduce 4-year costs by 71 percent compared to the AWS solution and 61 percent compared to the Azure cloud solution we priced. Similarly, the Dell solution with APEX Subscriptions would reduce 4-year costs by 71 percent compared to AWS and 60 percent compared to Azure.
These findings indicate that organizations looking to benefit from the exciting potential of GenAI might see significant cost savings with an on-premises Dell solution, whether they opt to purchase and manage it themselves or choose a subscription-based Dell APEX pay-per-use solution.
To learn more about our in-depth GenAI solution TCO comparison, check out the report and infographic below.
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