These markets benefit from deep OS integration, interconnectivity between users products and a long history of "we have always used Word". None of that is the case for LLMs.
> For LLMs, either you supply a cloud API, or deal with a significant deployment burden nobody AFAIK has even started handling.
Why would there be a deployment burden? The actual setup isn't hard, the rest is wrapping the thingamabob into an API the product can use...same btw. as I have to do for cloud-LLM APIs, because the product ideally wants to be able to use different providers, so I have to abstract the API away anyway.
Sure, I have to worry about infrastructure, maintenance, and performance characteristics, but that's hardly different from running our databases or web-backends.
> Current best hope for on-premise is that one of the OS makers decides to do the work and does it well enough we could trust it.
Why? I don't have to trust the OS providers to integrate, say, postgres or nginx or redis either. Why would I need their help to run another piece of software that lives entirely in userspace?