NetApp Iterate.ai
NetApp Sellers & Partners
Joint Educational Series
Field Brief · The Deployment Decision

Where Should Your AI Actually Run?

Public, private and national AI all promise control. Most companies already use more than one, often without a plan for which job belongs where.

What you'll learn
The two questions that sort every AI job: how sensitive the data is, and how often it runs
Which everyday jobs belong in the public cloud, and which belong behind private walls
Why public, private, and national AI compare like renting versus owning

The core argument

Using public AI is like renting an apartment. Owning your AI is like buying a house. Some national governments are building a whole city — and even they rent a few things from someone else.

Public AI
Rent an apartment

Fast to move into. The landlord sets the rules, and the walls are thin.

Private AI
Buy a house

More work up front. Every wall is yours, and nobody can look in.

Sovereign AI
Build a city

A country's own stack — though most still lean on a foreign partner somewhere.

Key facts

The typical enterprise already runs an average 4.2 AI models in production.
Renting AI and owning AI cost very differently over time.
“Sovereign AI” often still depends on foreign infrastructure.
Workloads can be sorted by which belongs in a public cloud, withing private walls, or both.

By the numbers

67% / 22% / 11%
Enterprise AI split:
public / hybrid / on-premises
4.2
Avg number of AI models a typical enterprise runs, up from 1.9
~70%
Share of “sovereign” AI projects still rely on a foreign partner
The decision may already be made for you

While the architecture is debated, staff are quietly picking public AI on their own — and taking company data with them.

66%
Of office professionals have used AI at work believing it was against policy
34%
Have entered customer data into public AI (reported, likely much higher)
Detected rise in use of shadow AI in the last year

PagerDuty 2026 Shadow AI Survey; Wakefield Research, 1,250 office professionals, companies over $500M revenue); Verizon 2026 DBIR, which now ranks shadow AI the third most common non-malicious insider action.

Renting vs. owning your AI house

Most companies are renting when they could be buying. The AIPod Mini makes owning your own AI house just as fast as renting an apartment.

NetApp | Iterate.aiWhere Should Your AI Actually Run? · 01 / 02

Which job belongs where

This is rarely all-or-nothing. Most companies should run both, and sort the work by two questions: how sensitive is the data, and how often does the job run. Sensitive or constant belongs inside. Neither, and the cloud is fine.

The jobBelongs inWhy
Drafting public-facing marketing copyPublic cloudNo private data, occasional use.
Summarizing patient records or client transactionsPrivate deploymentRegulated data that cannot leave.
Answering staff questions regarding company policyPrivate deploymentInternal only, and runs all day.
Translating a public web pagePublic cloudNothing confidential in it.
Reviewing contracts for riskPrivate deploymentYour terms are your position.
Brainstorming an idea with against market dataEitherFine, provided nothing internal is pasted in.
Agents drawing information from your filesPrivate deploymentConstant use, and reads everything.

The pattern: anything touching your own records, or running constantly, belongs inside a private deployment.

Four questions that place any workload

1
How sensitive is the data? Health records, financials and trade secrets point inside by default.
2
What does the regulator demand? Healthcare, finance and government often have the decision clearly made.
3
How often does it run? A job that runs twice a month in the cloud is cheap. A job that runs all day, every day, is where metered pricing turns painful.
4
How strategic is it? A source of intellectual competitive advantage deserves the investment for private AI.
The list most companies never made

The question was never public or private. It is which work belongs where. Most companies have never considered those decisions.

Further reading

Full paper, 12 pages — iterate.ai/partners/netapp/papers.

About this series

A joint educational series on private AI and the AIPod Mini. NetApp — the governed data-control layer. Iterate.ai — the private intelligence layer.

NetApp AIPod Mini
NetAppIterate.ai
v1.2 · Aug 11, 2026
NetApp | Iterate.aiWhere Should Your AI Actually Run? · 02 / 02
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