Architecture · Privacy

Local LLMs for Business: When to Go On-Prem and How to Do It Safely

When local models beat cloud: data residency, privacy, and latency. Here’s the architecture, hardware, and guardrails we deploy.

12 min read Privacy-first Low latency
3When to go local
2GPU baseline
4Guardrails we add
HybridRouting ready

When local wins

Architecture we deploy

Model hosting: Llama variants with quantization for throughput.
Retrieval: On-prem vector store (pgvector/Weaviate) with access controls.
Gateway: Auth, rate limits, and routing between local and cloud.
Observability: Traces, logs, and cost/latency dashboards.

Security and guardrails

Deployment steps

  1. Assess data, latency, and cost targets; pick model size.
  2. Stand up hardware; containerize model + gateway.
  3. Implement retrieval and logging; run benchmarks.
  4. Pilot with one workflow; expand via hybrid routing.
Local LLMs are viable—when scoped, secured, and paired with clear routing to cloud models when needed.
Plan on-prem AI See more architecture guides

FAQ

Are local models accurate enough?

For many workflows, yes—especially with retrieval and tuning. Use cloud only for high-complexity reasoning.

How do we update models?

Versioned deployments with rollback; retest using regression evals before promotion.

What about cost?

Predictable for steady workloads; hybrid routing keeps costs optimized.

Do we lose features?

Some; mitigate with plugins/tools and a gateway that supports both local and cloud routes.