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BSS/OSS Academy

Hosting options

Where an AI solution runs decides who can see the data, what it costs as usage grows, who fixes it at night and which skills the operator must hold. The hosting choice is a business and regulatory decision as much as a technical one.

The options

← Most managedMost control →

SaaS AI

Inside an application you already license

AI features in a CRM or ITSM product. Fastest to adopt; least control over behaviour and data path.

Control
Run burden

Public-cloud AI services

Managed services from a hyperscaler

Models and AI tooling consumed as managed services, inside the operator’s cloud tenancy and contracts.

Control
Run burden

Sovereign hosting

In-jurisdiction by design

Cloud services operated within a jurisdiction, under local legal control and staffing, for national security or residency obligations.

Control
Run burden

Hybrid

A deliberate split

Sensitive data and retrieval held privately, some model calls to public services, with the boundary enforced centrally.

Control
Run burden

Private cloud

Your platform, often your data centres

AI workloads on the operator’s own cloud platform, with its own model hosting and retrieval.

Control
Run burden

Self-hosted models

Open-weight models you run

On any of the above. Full control of version and data; full responsibility for serving, patching and evaluating them.

Control
Run burden

On-premises

Dedicated hardware in your estate

Typically for network-adjacent or highly sensitive data. Predictable, but hard to scale up quickly.

Control
Run burden

Control and run burden are relative to each other, not measured; the trade-offs below say why.

Trade-offs

OptionCost shapeData residencyPerformanceSecurityOperational burdenSkills needed
Public-cloud AI servicesPay per use; grows with volumeRegion choice; check where processing happensElastic; subject to provider quotasShared model; tenancy controlsLow to mediumCloud and integration
SaaS AILicence add-on; may be bundledSet by the vendorSet by the vendorVendor’s controlsLowConfiguration and governance
Private cloudCapital plus run cost; fixed capacityFully controlledBounded by own capacityOwn controls end to endHighPlatform, model serving, MLOps
On-premisesCapital heavy; long refresh cyclesFully controlledPredictable; hard to burstOwn controls; physical tooHighestHardware, facilities, model operations
HybridMix of both; harder to forecastControlled where it mattersVaries by pathBoundary is the weak pointHighBoth sets
Sovereign hostingUsually priced above standard cloudIn-jurisdiction by designNarrower service rangeLocal legal controlMediumCloud plus compliance
Self-hosted modelsCompute cost replaces per-call feesWherever it is hostedDepends on hardware and tuningNo third-party model accessHighModel serving and evaluation
Relative, not absolute; the actual position depends on contracts and volumes.

Telco considerations

  • Network and subscriber data is often subject to national telecoms regulation as well as data protection law. Check which data classes may leave the country before choosing a public service.
  • Cost that scales with use looks cheap in a pilot of fifty contact-centre agents and very different across the whole contact centre. Model the full-volume cost before committing.
  • Self-hosting is not free control. It moves model upgrades, security patching and evaluation onto the operator’s own teams, permanently.
  • SaaS AI inside an existing product inherits that product’s data model. If the CRM’s view of the customer is wrong, its AI features will be too.