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On-prem AI is not legacy. It is local, secure and ready

Johannesburg, 23 Sep 2025
Andrew Harris, chief sales and marketing officer, DCC Technologies.
Andrew Harris, chief sales and marketing officer, DCC Technologies.

For years we’ve been told that cloud is the only future for IT. In that narrative, on-prem solutions are dismissed as legacy. The truth on the ground in Africa tells a very different story. On-prem AI is not a step backwards. It is local, secure and ready to deliver real value.

I see it almost every week when speaking to our reseller partners. Many operate in environments where bandwidth is patchy, power interruptions are still common, and regulatory compliance cannot be compromised. In these circumstances, a cloud-only strategy is not practical. An on-prem AI deployment, on the other hand, offers resilience and control. It means the business can keep running, insights keep flowing, and customer trust remains intact, regardless of whether the internet is up or down.

Global analysts make this point too. Teradata notes that on-prem AI provides complete control over data, low-latency performance for real-time decisions, and infrastructure that can be optimised for specific workloads. In industries such as healthcare, banking and manufacturing—where milliseconds and compliance matter—these advantages are not relics of the past. They are business essentials.

Across Africa, the strongest cases for on-prem AI come from the most demanding environments. A hospital cannot risk losing access to diagnostic tools during a power cut or an unstable internet connection. A bank cannot compromise on data sovereignty when customer trust depends on keeping information in-country. A mine or factory cannot afford the lag of routing decisions through a distant cloud when real-time safety and operational efficiency are at stake. These are not outdated scenarios. They are current imperatives that explain why on-prem AI is often the smarter first step in our region.

The economics reinforce the point. Bandwidth and connectivity costs in Africa remain significantly higher than in many other regions, which makes a cloud-only approach expensive to sustain. For organisations that need to run intensive AI workloads, sending large volumes of data across networks is not always viable. Running AI locally helps to ease these pressures. It allows businesses to control GPU usage, keep critical data in-country, and meet sovereignty requirements without the burden of escalating cloud bills.

None of this means cloud is irrelevant. Far from it. Cloud has a vital role to play in scaling services, sharing updates, and enabling collaboration. But the choice should not be framed as cloud versus on-prem. The smart approach is to start where resilience begins: close to the data, close to the customer, and on infrastructure that can be trusted. In Africa, that often means starting on-prem.

This is not an either-or debate, but a continuum. The real value lies in helping resellers and their customers make informed choices that balance global technology trends with African realities. In some cases the cloud is the right fit. In others, on-prem makes more sense. Most often, the answer will be a hybrid model that evolves alongside the business.

On-prem AI is not yesterday’s story. It is today’s pragmatic path to innovation in Africa. When the infrastructure is local and secure, the potential is immediate. The organisations that recognise this will not just keep pace — they will lead.

References:

1. https://www.teradata.com/insights/ai-and-machine-learning/on-prem-ai

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