Comparison
Self-Hosted Local LLM vs Metered Cloud LLM APIs: zero token tax and 100% ERP data sovereignty
Metered cloud LLM APIs charge recurring token tolls on every multi-page PDF and SuiteQL prompt while transmitting raw General Ledger rows, customer pricing, and vendor banking details outside your firewall. DataOngoing deploys a self-hosted open-weight Local LLM stack (vLLM or Ollama) inside an isolated internal container network (internal: true) in 14 days ($18,500 flat fee), delivering $0.00 per-token inference, 78%–92% 3-year TCO savings (modeled), and 100% on-premise or private-VPC data residency.
| Dimension | Metered Cloud LLM APIs & SaaS Wrappers | DataOngoing Self-Hosted Local LLM |
|---|---|---|
| Marginal cost per token / page | Recurring per-1M-token + per-page SaaS markups | $0.00 / token and $0.00 / page on your own hardware |
| 36-month TCO (25k docs/mo + 40 users) | $162,000–$342,000 over 36 months (modeled) | $26,000–$47,300 total ($18,500 setup + compute, 78%–92% savings, modeled) |
| ERP & GL data residency | Prompts and GL rows traverse external third-party APIs | 100% inside your Private VPC or on-premise rack (internal: true) |
| Model weight ownership | Opaque provider checkpoints subject to deprecation | Pinned open-weight checkpoints (Qwen2.5-VL, Llama-3.3, Qwen2.5-Coder) |
| Audit & CISO posture | Requires third-party DPA exceptions and subprocessor reviews | Zero external subprocessors; air-gapped telemetry disabled |
Frequently asked questions
How fast is the payback on a self-hosted Local LLM vs. cloud APIs?
For a mid-market distributor or manufacturer processing 15,000–25,000 OCR pages per month and running daily SuiteQL analytics across 30–50 users, the $18,500 setup sprint typically reaches break-even in 4 to 6 months against metered cloud API and per-page SaaS bills (modeled).
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