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On-Premises LLM Deployment in Australia

Run your custom AI entirely on your own servers. Zero internet dependency, sub-50ms latency, complete control over every component. The ultimate in data sovereignty and performance for Australian enterprises.

100%
data stays on your servers
0
internet dependency after deployment
<50ms
inference latency: sub-50ms typical
256-bit
military-grade AES encryption

Why On-Premises Matters

For organisations where data must never leave the building, whether for regulatory, security, or strategic reasons, on-premises deployment is the only option that provides absolute assurance.

Absolute Data Control

With on-premises deployment, your data never leaves your physical premises. There is no cloud provider, no network egress, and no third-party access of any kind. For organisations handling classified government data, privileged legal information, patient health records, or proprietary trade secrets, this level of control is non-negotiable. Even sovereign cloud solutions involve a managed service provider, on-premises eliminates this entirely.

Superior Performance

On-premises deployment eliminates the network latency inherent in cloud-based AI services. Where a cloud API call adds 100 to 300ms of network round-trip time, on-premises inference happens in under 50ms on local hardware. For applications requiring real-time AI responses: interactive document analysis, live customer service assistance, or time-sensitive compliance checks: this performance difference is significant.

Air-Gap Capable

Certain environments require complete network isolation: defence contractors, intelligence agencies, critical infrastructure operators, and organisations handling the most sensitive commercial data. On-premises LLM deployment supports fully air-gapped operation where the AI system has no network connectivity whatsoever. Updates and model improvements are delivered via offline media transfer.

Architecture Overview

From site assessment to go-live, the deployment process is structured to minimise disruption and ensure reliable operation from day one.

1

Site Assessment

We assess your data centre or server room: power capacity, cooling, network connectivity, physical security, and existing infrastructure. A detailed hardware specification and network architecture is produced.

2

Hardware Procurement & Setup

Server hardware is procured, configured, and stress-tested. We handle GPU driver installation, OS hardening, network configuration, and security baseline implementation. All done on-site or pre-staged at our facility.

3

Software Deployment & Training

The LLM inference stack, RAG pipeline, API layer, and monitoring tools are deployed. Your model is fine-tuned on your data and validated. Integration with your business systems is configured and tested.

4

Go-Live & Managed Operations

The system goes live with your team trained on day-to-day operations. Ongoing managed services include monitoring, model updates, security patching, and performance optimisation.

Deployment Options

Choose the deployment model that fits your existing infrastructure and operational preferences.

Bare Metal

Maximum performance with direct hardware access. The LLM runs directly on your server hardware without virtualisation overhead, delivering the best possible inference latency and throughput. Ideal for organisations with dedicated AI hardware that want to extract every bit of performance.

  • Zero virtualisation overhead for maximum GPU utilisation
  • Direct hardware access for optimal memory bandwidth
  • Best option for high-throughput production workloads
  • Supports NVIDIA multi-instance GPU (MIG) partitioning

VMware / Hypervisor

Deploy within your existing virtualisation infrastructure. The LLM runs inside a VM with GPU passthrough, integrating with your standard VM management workflows, backup procedures, and monitoring tools. Compatible with VMware vSphere, Proxmox, and Hyper-V.

  • GPU passthrough for near-native performance
  • Integrates with existing VM lifecycle management
  • Snapshot and backup compatibility
  • Resource isolation from other workloads

Kubernetes

Cloud-native deployment using container orchestration. The LLM runs in Kubernetes pods with GPU scheduling, auto-scaling, and health monitoring. Ideal for organisations with existing Kubernetes infrastructure who want elastic scaling and declarative configuration.

  • Auto-scaling based on inference demand
  • Rolling updates for zero-downtime model upgrades
  • GPU resource scheduling and multi-model support
  • Helm charts for repeatable, version-controlled deployment

Hardware & Software Stack

A reference architecture for on-premises LLM deployment. Exact specifications are tailored during the site assessment based on your workload requirements.

Hardware Requirements

  • GPU: 1-4x NVIDIA A100/H100 (80GB VRAM) or equivalent
  • RAM: 128-512GB DDR5 ECC (depending on model size)
  • Storage: 2-8TB NVMe SSD (model weights + vector database)
  • Network: Redundant 10GbE minimum (25GbE recommended)
  • Power: 2-6kW per server (UPS and generator backup required)

Software Stack

  • OS: Ubuntu Server 22.04 LTS (hardened configuration)
  • Inference: vLLM or TensorRT-LLM for optimised serving
  • Vector DB: Qdrant or Milvus for RAG retrieval
  • API: FastAPI gateway with rate limiting and auth
  • Monitoring: Prometheus + Grafana for performance metrics

Cost Comparison: On-Premises vs Cloud vs SaaS

Understanding the true cost of each deployment model helps make an informed infrastructure decision based on your scale and timeline.

On-Premises

Upfront$80K-$150K
Monthly$3K-$8K/mo
3-Year TCO$188K-$438K
Per-User CostDecreases with scale

Sovereign Cloud

Upfront$10K-$30K
Monthly$3K-$6K/mo
3-Year TCO$118K-$246K
Per-User CostFlat rate

SaaS (per-user)

Upfront$0
Monthly$60/user/mo
3-Year TCO$216K (100 users)
Per-User CostIncreases with scale

Related Solutions

Custom LLM for Government

Sovereign AI for Australian government agencies with IRAP assessment and Protected classification support.

Government solutions →

Custom LLM Features

Full feature breakdown including RAG, fine-tuning, vector search, and multi-modal support.

View features →

Melbourne Deployment

On-site consultation and deployment support for Melbourne enterprises from our local team.

Melbourne solutions →

Frequently Asked Questions

Common questions about on-premises LLM deployment for Australian enterprises.

What hardware do we need for on-premises LLM deployment?

The hardware requirements depend on your model size and throughput needs. For a standard enterprise deployment serving 50 to 200 concurrent users, we typically recommend a server with 2x NVIDIA A100 or H100 GPUs (80GB VRAM each), 256GB system RAM, 2TB NVMe storage, and redundant 10GbE networking. Smaller deployments can run on a single A100 or even consumer-grade GPUs like the NVIDIA RTX 4090 for teams under 20. We provide a detailed hardware specification as part of our assessment.

Can the system run without any internet connection?

Yes. Once deployed, the on-premises LLM operates entirely within your local network with zero internet dependency. All inference, data processing, and model serving happen on your hardware. The only time internet connectivity is required is for initial software deployment and periodic model updates, both of which can alternatively be done via offline media transfer for air-gapped environments.

How does performance compare to cloud-hosted AI?

On-premises deployment typically delivers better inference latency than cloud-hosted solutions because there is no network round-trip to an external data centre. Our standard deployments achieve sub-50ms time-to-first-token latency for typical enterprise queries. Throughput depends on hardware: a dual A100 setup handles 200 to 400 concurrent requests with consistent performance. For comparison, cloud API calls typically add 100 to 300ms of network latency alone.

What is the total cost compared to cloud or SaaS AI?

On-premises deployment has higher upfront capital expenditure but lower ongoing operational costs. A typical enterprise setup costs $80,000 to $150,000 in hardware plus $3,000 to $8,000 per month in managed services. Over three years, this is typically 30 to 50 percent less expensive than cloud-hosted equivalent capacity, and 60 to 70 percent less than SaaS per-user pricing for organisations with 200 or more users. The financial case strengthens with scale and time.

Who manages the hardware and software after deployment?

We offer three management models. Fully managed: our team handles all hardware monitoring, software updates, model retraining, and incident response via secure remote access. Co-managed: your IT team handles hardware and OS while we manage the AI stack. Self-managed: we provide documentation and training for your team to manage everything independently with optional support tickets. Most enterprise clients choose the fully managed or co-managed model.

Can we start with cloud and migrate to on-premises later?

Absolutely. This is a common pattern. Many organisations start with our sovereign cloud deployment to validate the AI use case and quantify ROI, then migrate to on-premises once the business case is proven. The migration path is straightforward because the same model, configuration, and integrations transfer directly. We handle the migration with minimal downtime, typically completing it over a weekend.

Ready for On-Premises AI?

Book a site assessment to understand exactly what your on-premises LLM deployment will look like: hardware requirements, network architecture, timeline, and total cost of ownership.

Sources and further reading