The Resurgence of On-Prem Computing in the Age of AI: Insights from CIOs Across the Nation
By Lane F. Cooper, Editorial Director, BizTechReports and CIO.com Moderator
Artificial intelligence (AI) and its integration into enterprise systems are driving a resurgence of on-prem computing. In a recent CIO.com virtual roundtable co-hosted by IBM's Wayne Derry, senior enterprise technology executives from across the country explored the challenges and opportunities presented by this shift, particularly for organizations that previously embraced a "scorched earth" approach by eliminating their data centers
CTO (Americas Group) IBM Power at IBM Corporation
AI-Driven Reassessment of IT Infrastructure
Increasing demands of AI workloads, especially those requiring substantial computational power, are prompting many companies to reevaluate their reliance on cloud services alone. Organizations that maintain conventional data centers increasingly recognize that these facilities may not be adequately equipped to handle the intensive computational needs of modern AI applications.
The roundtable discussion underscored that AI is not just influencing the demand for on-prem computing — it is reshaping it. Companies are now critically examining the strategic implications of this shift, particularly how it impacts the economics of IT and enterprise technology. As AI increasingly integrates into various business operations, from customer service to enterprise resource planning, the need for robust, local compute resources is becoming more evident.
Building the Right Foundations
A key theme from the discussion was the importance of laying the necessary technological foundations to support this transition. Organizations must assess the capacity of their existing infrastructure as well as the scalability and security of their on-prem environments. Integrating AI into these systems requires meticulous planning to ensure enterprises fully realize benefits without compromising security or performance.
The consensus among the executives was that the debate is no longer simply about choosing between cloud and on-prem resources but rather about finding the right balance between the two. This balance involves leveraging the strengths of both environments to meet the specific needs of AI-driven workloads. For some organizations, a hybrid approach might be the optimal solution, while others may find that returning to on-prem computing offers the control and efficiency they require.
The roundtable highlighted the need for infusing flexibility into IT strategies to support AI in a manner that aligns with mission-critical objectives. And as AI technology advances, so must the strategies companies employ to harness its power effectively.
During the discussion, IBM's Derry emphasized his company's robust support for AI workloads in on-prem environments through its Power platform and WatsonX suite. These solutions, he explained, offer comprehensive capabilities for AI, data, and governance, enabling flexible deployment across hybrid setups.
Wayne pointed out that IBM's Pools 2.0 offers a consumption-based model for organizations looking to integrate cloud-based economics into their on-prem environments. This approach allows for efficient resource management akin to cloud environments while retaining the control and security of on-prem infrastructure.
The insights from the roundtable make it clear that the future of enterprise computing will not be about choosing between cloud and on-prem but about creating a flexible, balanced strategy that leverages the best of both worlds. As AI evolves, so too will the approaches that organizations take to support it, ensuring that they remain competitive and capable of meeting the demands of the digital age.
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