Dell AI Factory and AWS SageMaker Cost Comparison Report

This technical report presents a detailed analysis of the costs associated with deploying AI solutions using the Dell AI Factory on-premises solution and AWS SageMaker. The document outlines the configurations tested, including hardware specifications for both Dell and AWS environments. It describes the methodology used to estimate costs for running an AI workload based on the open-source Llama 3 8B model across four different scenarios: Dell AI Factory on-premises (CAPEX), Dell AI Factory managed with Dell APEX Infrastructure, and AWS SageMaker. The report provides normalized total cost of ownership (TCO) comparisons over a five-year period, highlighting significant cost differences between the solutions. The findings indicate that the AWS SageMaker solution could cost up to 1.70 times more than the Dell AI Factory on-premises solution. Additionally, the report includes detailed configuration information for the hardware and cloud instances utilized in the analysis, as well as insights into storage and usage considerations for each solution.