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Local AI servers are different because they don't have to form a single system. If one AI server goes down, just use the other one.

This is unlike customer facing systems where, if your database server goes down, you probably can't just use the other one--the whole system is down.

There are plenty of horizontally scaled systems where the choice is still made to use a cloud provider.

It’s really a lot more about business focus.

I don’t want to hire someone who understands how an email server works if I can pay Microsoft $10/employee/month for an email account.