Cost Comparison of Dell AI Factory and AWS SageMaker

This technical report presents a cost comparison between an on-premises Dell AI Factory with NVIDIA solution utilizing Red Hat OpenShift and a similar AWS SageMaker cloud solution. The analysis indicates that the Dell AI Factory solution can deliver a significantly lower total cost of ownership (TCO) over a five-year period, with reductions of 33% when transacting through Dell APEX Infrastructure and 38% for a traditional capital expenditure (CAPEX) model. The report outlines the challenges organizations face in adopting AI technologies, particularly budget constraints and the complexities of selecting the right solution. It details the pricing models for both the Dell AI Factory and AWS SageMaker, including the costs associated with specific tasks in a GenAI workload. The report also includes assumptions made during the analysis, such as excluding taxes and management costs for the cloud solution. Overall, the findings suggest that deploying on-premises solutions may be more cost-effective for organizations looking to leverage AI technologies.