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A clear framework for deciding, per workload, whether local or cloud is the right answer — and when a hybrid is best.
The 'is local better than cloud' debate is the wrong frame. The right frame is: per workload, which fits better? The same team can run cloud-frontier coding assistants and a local PII redactor and a hybrid RAG, all in production, all justified by the workload. Decide one workload at a time.
| Workload | Recommendation | Why |
|---|---|---|
| Customer-facing chatbot, frontier reasoning needed | Cloud | Capability dominates |
| Internal PII-redaction microservice | Local | Sensitivity dominates |
| Coding assistant for individual developer | Cloud or hybrid | Capability matters; data is mixed |
| Healthcare chart summarization | Local or trusted private cloud | Compliance dominates |
| Ad-hoc analyst exploration | Cloud | Capability + low volume |
| Logging-pipeline classifier | Local | High volume, simple task |
| Real-time game NPC dialogue | Local | Latency and cost dominate |
The big idea: local vs cloud is a workload question, not a worldview. Score the workloads, build the hybrid, and let the architecture follow the data.
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