Hybrid Cloud AI Cost Calculator
Compare On-Premise GPU TCO vs. Cloud GPU operational costs.
Should you build an on-premise GPU cluster or use the cloud? Our calculator helps you compare the upfront hardware and electricity costs against the monthly operational expense of renting from providers like AWS, GCP, and Azure. Make a financially sound infrastructure decision for your AI strategy.
Hybrid Cloud AI Cost Calculator
Compare on-premise GPU TCO vs. cloud GPU operational costs across major providers.
About This Tool
The Hybrid Cloud AI Cost Calculator is a strategic tool for enterprise CTOs, CFOs, and IT decision-makers. Choosing between building an on-premise AI infrastructure and renting from the cloud is a complex decision with long-term financial implications. This calculator clarifies the trade-offs by providing a direct comparison. For cloud, it estimates the flexible, pay-as-you-go operational expenditure (OpEx) based on the hourly rates of popular NVIDIA GPUs on AWS, GCP, and Azure. For on-premise, it estimates the initial capital expenditure (CapEx) required to purchase the hardware outright, plus the ongoing monthly electricity costs. By placing these two models side-by-side, you can analyze the TCO (Total Cost of Ownership) over time, understand your break-even point, and decide which model aligns with your company's financial strategy, security requirements, and scalability needs. It empowers enterprises to move beyond simple hourly rates and make a comprehensive, data-driven decision about where to run their mission-critical AI workloads.
How to Use This Tool
- Select your desired "Deployment Model"—choose a specific cloud provider, "On-Premise", or "All" to compare.
- Choose the NVIDIA GPU Model you are considering.
- Enter the number of GPUs you require and the hours per month you expect to use them.
- For the on-premise calculation, enter your local electricity cost per kilowatt-hour ($/kWh).
- The calculator will display the monthly operational cost for cloud options and the upfront hardware + monthly electricity cost for the on-premise option.
- Compare the cloud OpEx against the on-premise CapEx + OpEx to inform your financial and infrastructure strategy.
In-Depth Guide
The CapEx vs. OpEx Trade-Off
This is the fundamental financial decision in IT infrastructure. On-premise is a Capital Expenditure (CapEx)—a large, upfront investment that is depreciated over time. Cloud is an Operational Expenditure (OpEx)—a recurring, pay-as-you-go cost. Companies with strong capital may prefer the predictability of CapEx, while startups often prefer the flexibility of OpEx.
Calculating On-Premise Total Cost of Ownership (TCO)
Our calculator provides the two largest components of on-premise TCO: the upfront hardware cost and the ongoing electricity cost. A full TCO analysis must also include: 1. Cooling: GPUs are energy-intensive and require specialized cooling, which also consumes power. 2. Data Center Space: Racks, networking, and physical security. 3. Personnel: IT staff to manage and maintain the hardware. 4. Software Licensing: Operating systems, orchestration software, and drivers.
When Does On-Premise Make Financial Sense?
On-premise typically becomes more cost-effective for large-scale, highly utilized, and stable workloads. If you are running hundreds of GPUs 24/7 for years, the upfront investment can pay off compared to renting indefinitely from the cloud. This is often the case for large, established companies with predictable AI training and inference needs.
The Intangible Benefits of Cloud
Beyond cost, the cloud offers significant advantages. You get access to the latest hardware generations instantly without procurement cycles. You can scale globally in minutes. You offload the burden of hardware maintenance and management to the provider. For most businesses, especially those that are growing or experimenting, this agility and speed-to-market is worth the premium over on-premise.