AI’s mainstreaming continues apace with 78% of organizations using AI in at least one business function, with 92% planning to invest more in AI over the next three years, according to McKinsey.
Given such resounding adoption, IT has an imperative to gauge the value of their AI implementations, often expressed as a critical metric known as return-on-investment (ROI).
Calculating true ROI has proven to be an elusive, if uneven process, as reports attest. This is hardly surprising; scaling AI is often slow, complex and expensive.
To fully realize AI’s potential, organizations must balance investments across people, processes and technology. Organizations that master this juggling act may tap into new levels of increased productivity, faster time-to-value and greater operational efficiency while reducing security risks.
On-premises ROI is potentially game-changing
New research suggests that one approach to deploying AI can deliver an eye-popping 1,225% ROI and millions of dollars in savings and benefits over four years. That approach? An on-premises deployment featuring top-tier infrastructure, accelerated computing and professional services from trusted AI providers such as Dell and NVIDIA.
Let’s dive into the details.
Enterprise Strategy Group (ESG) conducted a quantitative economic analysis, commissioned by Dell, to estimate the potential ROI mid-to-large enterprise or public sector organizations could achieve by deploying the Dell AI Factory with NVIDIA to scale generative AI workloads in production.
The Dell AI Factory with NVIDIA joins Dell’s AI-optimized infrastructure with NVIDIA’s software and acceleration technologies to simplify the deployment and management of AI. It is built to address customer challenges around high costs, complex data management and security risks associated with deploying enterprise AI into production.
This scenario estimates that an organization spending $1.96 million to deploy the Dell AI Factory with NVIDIA could realize cost savings and benefits totaling $25.9 million over four years, yielding a net benefit of $23.9 million and an ROI of 1,225%.
Check out the results :
The model also found that customers can recoup their investment in the Dell AI Factory with NVIDIA within the first year. That’s tough to beat in any implementation.
The implementation models large language model (LLM) inferencing with retrieval-augmented generation (RAG), assuming 10,000 users, each running 50 queries per day at 3,000 tokens per query. The model reflects a four-year, steady-state deployment for organizations with sustained AI activity and is inclusive of ongoing AI solution management costs.
Actual results will vary based on factors such as organization size, AI maturity and workload types. Find additional breakdowns on the methodology and benefits, such as productivity gains, faster time to value, better operational efficiency and reduced risk, in the full analysis.
How on-premises bests public cloud on costs
This scenario was designed to evaluate the cost savings and business value the Dell AI Factory with NVIDIA can deliver compared to alternative approaches for deploying and managing AI infrastructure, such as the public cloud.
As more organizations operationalize AI, it’s become clear that running infrastructure on premises affords organizations the ability to control all aspects of deployment, lending itself well to large, predictable workloads, as well as sensitive environments that prize data security and data sovereignty mandates.
To that end, ESG’s model builds on other research the company conducted earlier on behalf of Dell that found that deploying AI workloads with the Dell AI Factory could be as much as 62% more cost-effective than the public cloud and as much as 75% more cost-effective than an API-based service.
Regardless of the location organizations choose to run their AI workloads, such implementations present new challenges for even experienced IT teams.
As trusted advisors for enterprise AI, Dell and NVIDIA help fill the gap, offering top-tier technology and services, with hooks into an open ecosystem of software vendors and other partners who can support your AI use cases today and in the future.
Learn more about the Dell AI Factory with NVIDIA.
