Private vs Public AI: Trade-offs for Australian Businesses
The trade-offs between cloud-hosted AI services and self-hosted models. Privacy, cost, performance, and control: what to consider.
The trade-offs between cloud-hosted AI services and self-hosted models. Privacy, cost, performance, and control: what to consider.
When deploying AI for your business, one of the first decisions is where the AI runs and where your data goes. The spectrum runs from fully public (cloud API) to fully private (self-hosted on your own infrastructure).
Public AI means using cloud services like OpenAI's API, Google Gemini, or Anthropic's Claude directly. Your data is sent to their servers for processing.
Private AI means running models on your own infrastructure: on-premises servers, your own AWS account, or dedicated cloud instances. Open-source models like Llama 3, Mistral, and Phi can be self-hosted.
The middle ground: AWS Bedrock. Use frontier models (Claude, Mistral) via API, but your data stays within your AWS account and VPC. Not used for training. Best of both worlds for many use cases.
| Factor | Public API | AWS Bedrock | Self-Hosted |
|---|---|---|---|
| Data location | Vendor servers | Your AWS account | Your infrastructure |
| Model quality | Frontier | Frontier | Good (open-source) |
| Setup effort | Minutes | Hours | Days to weeks |
| Per-query cost | Medium | Medium | Low (after setup) |
| Infrastructure cost | None | AWS services | GPU instances |
| Privacy | Varies | Strong | Maximum |
| Ops burden | None | Low | High |
Most of our clients end up with a hybrid:
Meet the person
This article comes from real projects. If it raises a question about your own system, you can ask the founder directly.
HELLO PEOPLE designs, builds and looks after AI, software, app and data solutions for Australian businesses, with senior expertise on every project and a scope agreed before work starts. For AI, that means working on your own data, with a person able to check every answer.
Since 2007, HELLO PEOPLE has delivered more than 100 projects from Perth for small and medium businesses across Australia: custom software and apps, system integrations, data migrations, reporting and dashboards, and AI that works inside the systems a business already runs.
I lead every engagement myself. I trained in accounting before moving into IT, hold accounting and IT professional qualifications and an MBA, and bring more than 20 years of experience across sales, service delivery, inventory and compliance. I am also a PhD candidate in AI at Curtin University, researching retrieval-augmented generation (RAG), so the technology is always judged by what it does for the business.
Small and boutique. The person who scopes your AI project is the person who builds it, and the same person checks its answers before your team relies on them.
No ticket queue and no account manager in between. You hear back within one business day, usually sooner.
The first AI project is the start, not the end. When you need the next system, integration or report, you call the same person, who already knows your business.
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Kasun Wijayamanna
Founder, replies within one business day
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