Summary
This Technical Report evaluates the Total Cost of Ownership (TCO) for deploying PostgreSQL pipelines that support generative and agentic AI solutions, specifically focusing on Retrieval-Augmented Generation (RAG). The study compares two approaches: a sovereign on-premises solution using EDB Postgres AI and a do-it-yourself (DIY) public cloud solution on AWS. It details the costs, development complexity, and operational efforts associated with each deployment method. The report outlines that EDB Postgres AI offers significant advantages, including lower development and maintenance complexity, faster development times, and reduced overall costs compared to the DIY approach. The analysis includes infrastructure and licensing costs, pricing assumptions, and annual cost breakdowns for both stacks. The findings suggest that while the on-premises solution requires upfront hardware investment, it is a more cost-effective choice for enterprises looking to optimize their RAG deployments. The report serves as a comprehensive guide for organizations considering their options for AI-enabled applications.
