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AI that pays for itself: real cost savings with HPE Private Cloud AI

Move beyond AI experimentation and achieve tangible ROI. This blog explores how HPE Private Cloud AI delivers a practical, scalable solution for businesses seeking real-world AI results.

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AI's transformative power is undeniable, yet many businesses find themselves throwing money at it without seeing concrete results. Are you experiencing this frustration, stuck in a loop of experimentation without clear, measurable outcomes?

This blog will show you how to break free and achieve real-world impact. The journey, however, is not without its hurdles. From the complexities of model selection and data wrangling to the integration of disparate tools and the challenge of cost-effective scaling, these obstacles often prevent companies from achieving their desired AI ROI.

To truly unlock that ROI, overcoming these hurdles boils down to speed—getting to value faster and building AI that can keep up with your business, no matter what. It's about streamlining your approach and focusing on practical, scalable solutions. By tackling these challenges head-on, you can transform your AI investments from a whirlwind of uncertainty into a powerful engine for growth.

Breaking free from AI complexity

Navigating the complexities of AI can feel overwhelming. You could continue to use the cloud, build your own AI infrastructure, or purchase a commercial solution. Customers tell us they want an end-to-end solution that 'just works.' A solution that empowers teams to focus on core tasks such as building models and extracting insights without the constant burden of data and infrastructure management.

HPE Private Cloud AI solves AI complexity with an integrated, ready-to-deploy platform. Get up and running in eight hours with a complete package of hardware, services, and essential AI tools like NVIDIA AIE, NVIDIA
NIMS and popular open source frameworks like Airflow, Spark, Ray, and Superset. With HPE automated updates, you'll always have access to cutting-edge AI technology, keeping you ahead of the curve.

If you're operating under the assumption that the cloud is the most cost-effective option, or that building your own AI infrastructure is a simple, budget-friendly endeavor, we urge you to look closer. The Enterprise Strategy Group's (ESG) latest economic validation, The Economic Benefits of HPE Private Cloud AI with NVIDIA AI Computing by HPE, offers compelling data that challenges these beliefs and shows the true economic benefits of an integrated private cloud AI solution. 

HPE Private Cloud AI compared to public cloud

ESG's analysis, detailed in the figure below, compares three-year AI infrastructure costs, revealing significant per-GPU-hour savings with HPE Private Cloud AI across various deployment sizes. This comparison with public cloud reserved instances illustrates the impact of commitment and consumption models on cost for enterprise-grade, high-availability AI workloads.

Comparing GPU cost per hour is a relevant metric when evaluating AI infrastructure, particularly when contrasting HPE Private Cloud AI with public cloud offerings. Modern AI, especially deep learning, relies heavily on GPUs for processing, as these workloads are computationally intensive, and GPU availability directly impacts performance and training times. However, variable cloud pricing, influenced by factors like instance type, region, on-demand versus spot pricing, data transfer fees, and storage costs, can create complex and unpredictable long-term expenses, potentially leading to budget overruns. In contrast, HPE Private Cloud AI aims to provide a more predictable cost structure. By offering dedicated infrastructure, it can deliver more stable and potentially lower long-term GPU costs, especially for consistent, heavy AI workloads.

Source: Enterprise Strategy Group Research, Economic Validation, Economic Benefits of HPE Private Cloud AI with NVIDIA AI Computing by HPE, March 2025.Source: Enterprise Strategy Group Research, Economic Validation, Economic Benefits of HPE Private Cloud AI with NVIDIA AI Computing by HPE, March 2025.

The findings clearly demonstrate that HPE Private Cloud AI offers substantial cost savings for AI workloads with consistent demand. Furthermore, ESG's analysis confirms that these cost advantages grow as AI infrastructure scales, aligning with broader industry trends favoring on-premises solutions over cloud TCO models. Notably, even at lower utilization levels, starting at 50%, this solution maintains its cost-effectiveness in select configurations..

Read the report to dive deeper into this comparison.

HPE Private Cloud AI compared to DIY solutions

HPE Private Cloud AI delivers up to 50% TCO savings across small, medium, and large AI infrastructure configurations compared to DIY solutions. The savings shown in the figure below are driven by reduced engineering, operational, and software licensing costs. 

HPE Private Cloud AI vs. DIY – 3-year TCO savings. To ensure balanced comparison, platform management costs including IT, network, software management and firmware were assumed identical for each deployment size and consistent across HPE Private Cloud AI and DIY totaling $1,087,200. Source: Enterprise Strategy Group Research, Economic Validation, Economic Benefits of HPE Private Cloud AI with NVIDIA AI Computing by HPE, March 2025.HPE Private Cloud AI vs. DIY – 3-year TCO savings. To ensure balanced comparison, platform management costs including IT, network, software management and firmware were assumed identical for each deployment size and consistent across HPE Private Cloud AI and DIY totaling $1,087,200. Source: Enterprise Strategy Group Research, Economic Validation, Economic Benefits of HPE Private Cloud AI with NVIDIA AI Computing by HPE, March 2025.

Building an AI platform from scratch is a lengthy endeavor, demanding extensive hardware sourcing, network configuration, and AI pipeline management. HPE Private Cloud AI streamlines this process with an integrated, out-of-the-box environment. This simplification accelerates AI solution deployment by seven to nine months compared to DIY approaches, significantly speeding up business transformation. The table below reveals the significant time and value advantages customers realize by choosing HPE Private Cloud AI over a DIY approach to AI infrastructure.

Source: HPE internal analysis based on interviews with support and technical staffSource: HPE internal analysis based on interviews with support and technical staff

Summary

In today's fast-paced business landscape, AI's potential is undeniable. However, navigating its complexities and achieving tangible ROI requires a strategic and streamlined approach.

ESG's economic analysis demonstrates that HPE Private Cloud AI, when deployed on-premises, delivers significant value through improved cost efficiency, accelerated AI deployments, and enhanced security and compliance. ESG summarized the key customer benefits as follows:

Optimized cost and efficiency: HPE Private Cloud AI simplifies AI solution setup and operation, leading to streamlined cost management. By reducing the need for extensive manual configuration and minimizing IT resource requirements, organizations can achieve more efficient infrastructure and lower total cost of ownership.

Accelerated AI deployment and agility: The comprehensive design of HPE Private Cloud AI accelerates AI model development and release. Its integrated tools and flexible architecture enable organizations to rapidly adapt to market changes, while ensuring the reliable performance of their AI applications.

Strengthened security and compliance: For organizations prioritizing security and compliance, HPE Private Cloud AI offers robust features. The integration of zero-trust architecture and comprehensive governance and compliance tools facilitates secure AI collaboration, protects sensitive data, and ensures adherence to regulatory requirements.

If you're looking for a clear and confident path to AI success, HPE Private Cloud AI provides it. Offering significant cost savings, rapid deployment, and a simplified, pre-integrated environment, this solution empowers you to move beyond uncertainty and embrace a future where AI delivers measurable business impact. Don't just speculate on AI's potential; invest in its proven results.

Learn more

Enterprise Strategy Group, Economic Validation, “The Economic Benefits of HPE Private Cloud AI with NVIDIA AI Computing by HPE,” March 2025.
Enterprise Strategy Group, Technical Validation, “Accelerate AI Business Value with NVIDIA Computing for HPE,” March 2025.
HPE Private Cloud AI website


Joann Starke
Hewlett Packard Enterprise

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[1] Switching backplane provides the horsepower to train models by scaling 8 servers and GPUs on the same backplane.

[2] Time may vary due to inactivity while waiting for hardware availability or on-boarding and training of skilled personnel. This time estimate does not include support.  

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About the Author

JoannStarke

Joann is an accomplished professional with a strong foundation in marketing and computer science. Her expertise spans the development and successful market introduction of AI, analytics, and cloud-based solutions. Currently, she serves as a subject matter expert for HPE Private Cloud AI. Joann holds a B.S. in both marketing and computer science.