Yes, On-Premise AI is worthwhile for many SMEs, especially if you have strict data protection requirements, need Swiss data sovereignty or must comply with regulatory standards.

When is On-Premise AI worthwhile for SMEs?

Compliance requirements

On-Premise required for:

  • Regulated industries (banks, law firms, accountants, healthcare)
  • Compliance requirements (FINMA, GDPR, HIPAA)
  • Swiss data sovereignty – data stays in the country
  • Sensitive business data – contracts, client data, health data

Advantages:

  • Cloud solutions often don’t meet compliance requirements
  • On-Premise is often the only legally secure option

Data protection and confidentiality

On-Premise means:

  • Data stays with you – no sharing with third parties
  • No US cloud providers – no access by foreign authorities
  • Full control over access, backup and deletion
  • No token logs with external providers

Data sovereignty

Swiss SMEs benefit from:

  • Physical data localisation – servers in Switzerland
  • Swiss law as the standard for data protection and contracts
  • Independence from global cloud strategies and price developments

Typical SME scenarios

Scenario 1: Law firm

Team: 2–25 lawyers

Requirements: Confidentiality, client protection, GDPR
On-Premise: Required for compliance

Scenario 2: Accountant / bookkeeping firm

Team: 5–20 employees

Requirements: FINMA, tax data, business secrets
On-Premise: Sensible to required for compliance

Scenario 3: Banks and authorities

Requirements: Strict regulation, national security
On-Premise: Often the only option

Decision factors

1. Data protection requirements

High requirements (On-Premise sensible):

  • Regulated industries
  • Compliance obligations
  • Sensitive business data

Low requirements (cloud possible):

  • Public or non-critical data

2. Sovereignty and independence

On-Premise offers:

  • No dependence on cloud pricing models
  • Predictability and control
  • Swiss law as basis

Costs

For concrete cost examples and scenarios see How much does it cost to run AI yourself?.

Next steps

Contact us – Get advice

Sources and further information: