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On-Premise AI for Business

On-premise AI for
business
when your data
doesn't belong in
someone else's hands.

Pixelschnitzel sets up AI systems that, on request, run inside your own infrastructure or in a controlled environment for more privacy, more control and closer proximity to your processes.

Privacy-focused · can run inside your own network on request
GDPR‑compliant
Hosted in Germany
BVMID‑certified AI expert
AI made in Germany
Personal · since 2023
75+ projects delivered
Any company size
GDPR‑compliant
Hosted in Germany
BVMID‑certified AI expert
AI made in Germany
Personal · since 2023
75+ projects delivered
Any company size
What on-premise AI is really about

Many companies want to use AI
but not at any cost.

·
Cloud AI is powerful, but every request leaves your own network. For sensitive business or customer data, that's not an option in many organisations.
·
Data protection, trade secrets and works councils expect clear, traceable rules. A standard chatbot rarely meets that bar.
·
Token-based billing makes costs hard to plan, especially with broad usage. We work out with you up front what makes sense on-premise and what doesn't.
·
Cloud AI isn't inherently insecure, but it rarely comes without conditions attached. On-premise AI is an alternative wherever data sovereignty and control take priority.
What does on-premise AI mean?

AI that doesn't necessarily
have to run in the public cloud.

On-premise AI means AI systems don't have to run exclusively through public cloud services. Depending on the use case, they can run locally, close to your servers, in a private environment or in a suitable data centre, depending on the model, the security requirements and the area of use.

Which operating model really fits is something we work out together in a sober analysis, not in a sales pitch.

Local
Runs inside your own network, on your own hardware.
Private
In a dedicated, controlled environment, on request with a German host.
Hybrid
Sensitive data locally, less critical steps optionally in the cloud.
Sovereign
Open-source models, documented architecture, no vendor lock-in.
Cloud vs. on-premise

The direct comparison.
Without the marketing filter.

Criterion
Cloud AIOpenAI, Google, AWS …
On-premise AIOn-premise · your own hardware
Data flow
Through provider data centres
Stays within the defined boundary
Data-protection assessment
Data processing agreement + setup needed
Less data transfer required
Trade secrets
Secured by contract
Controllable at the architecture level
Cost model
Variable · scales with usage
Plannable · investment + maintenance
Internet dependency
High · no connection, no operation
Low · runs even on your internal network
Response time
Depends on API + internet
Can be very low depending on hardware
Vendor lock-in
High · API migration is costly
Low · open-source models usable
Model control
Provider controls versioning
You choose the model and the update timing

On-premise AI isn't automatically better, it's different. Which model fits which data and which use case depends on the specific setup. We help you make the decision with a clear head.

Rack of servers in a data centre
Your infrastructure, your AI

Hardware, models and applications
tuned to each other, and ready to run in-house.

Typical use cases

Where on-premise AI
makes a real difference.

Law firms & notaries

Client information never leaves the building.

Draft pleadings, search case files, analyse contracts, with an AI that can access internal documents without those documents flowing into public services. Data protection and professional duties stay part of the architecture, not just the terms and conditions.

Professional confidentiality and AI use have to fit together technically, not just legally.
Hospitals & practices

Process patient data with privacy in mind.

Draft doctor's letters, summarise findings, make knowledge from clinical guidelines searchable, on request in a controlled environment. Which data may be processed and how is something we clarify together with your data protection officer.

AI as relief, but only in the way data protection and the duty of care allow.
🏭
SMEs & industry

Protect engineering and sales knowledge.

Requirement specs, engineering data, strategy papers, supplier contracts made usable locally, without internal information flowing uncontrolled into external systems. Integration into existing ERP and document systems is part of the concept.

Decades of accumulated knowledge belong where it was created, inside the company.
🏛
Public authorities & administration

Make administrative knowledge usable, under control.

File research, draft reports, internal knowledge assistants, on your own or dedicated infrastructure, with clear roles and audit trails. Specifically for the public sector we have a dedicated service page.

AI in public administration needs clear limits of use, and an operating model that IT can support.
Research & development

Keep IP-sensitive content in-house.

Test series, patent research, study protocols, on-premise AI can make content accessible without research results ending up in external training data. Exactly where confidentiality matters more than convenience.

Anyone who researches for years should decide for themselves who gets to read the result.
🛡
Insurance & finance

Regulated processes, assisted under control.

Claims reports, dossiers, internal research, AI support in an environment that fits regulatory requirements. Which operating model fits the supervisory regime and your risk management we clarify on a project-by-project basis.

AI in regulated industries isn't a tool purchase, it's an architecture question.
Why on-premise AI?

Six reasons
that matter to decision-makers.

01
More control over your data

You decide where your data is processed, and which data goes into the AI in the first place.

02
Less platform dependency

Open-source models, documented interfaces, interchangeable components, no vendor lock-in to a US hyperscaler.

03
Tailored adaptation

Models and applications can be adapted to your language, your documents and your processes.

04
Integration into existing systems

Connection to ERP, DMS, CRM, knowledge bases, mail systems not as an island, but as part of your working world.

05
Usable for internal content

Your own documents, policies, contracts and processes become the data basis, not general knowledge from the public internet.

06
Easy to justify

To data protection, IT security, the works council and management you can explain exactly where which data ends up, and where it doesn't.

Who is on-premise AI right for?

When data protection,
processes and substance decide.

Mid-sized companies

Companies with processes grown over time.

Anyone who has built up software, data and knowledge over the years benefits especially from AI that can draw on that substance, and doesn't mirror it into someone else's systems.

Law firms & consultancies

Organisations with a duty of confidentiality.

Professional and confidentiality obligations often leave little room for cloud AI. On-premise AI can be a way to gain efficiency without weakening your own position.

Healthcare-related organisations

Practices, medical centres, hospitals, social services.

Patient data, care records, sensitive communication, AI use here has to be thought through with particular care. On-premise models open up options.

Industry & logistics

Production with its own IT structure.

Engineering and process data rarely belong in public services. On-premise AI connects to machine, ERP and logistics data right where it's already created.

Public sector

Administrations, municipal enterprises, public bodies.

For the public sector we have a dedicated page on the use of on-premise AI in public administration, with a particular focus on data protection, procurement and acceptance.

IT-driven organisations

Companies with their own IT responsibility.

Where an in-house IT team carries responsibility, an integrable, documented AI architecture is often more valuable than a sealed-off SaaS contract.

How we build it

Three layers.
One sovereign solution.

01
Layer / Hardware

Your own infrastructure.

We recommend, procure and install, from a workstation server to a GPU rack in your own data centre. Alternatively dedicated with a German host, if you'd rather not build up your own hardware.

NVIDIA RTX 6000 NVIDIA H100 AMD MI300 EPYC / Xeon 512 GB RAM GDPR host (DE)
02
Layer / Models

Open-source models at a high level.

We pick the right model for your use case, and swap it out when a better one comes along. Commercially usable, without API lock-in, on request with fine-tuning on your data.

Llama 3.3 70B Qwen 2.5 Mistral Large Gemma 3 DeepSeek Phi-4
03
Layer / Applications

Integrated into your working world.

Chat interface, RAG over your knowledge base, connection to ERP, DMS or CRM, workflow automation. We build the interfaces, cleanly documented, open-source on request.

Internal chat UI RAG pipeline Qdrant / Weaviate SAP connector Outlook / Teams REST + MCP
Cloud vs. on-premise over three years

On-premise AI pays off.
Over three years, too.

Scenario A · Cloud

Enterprise API + compliance effort

30 power users × 4 million tokens per month. Mid-range model, enterprise tier, plus data-processing and audit effort.

API usage (3 yrs)scales with load
Compliance + DPAsrecurring annually
Risk of a data breachopen-ended
Trend / 36 mo. more expensive
Scenario B · On-premise

On-premise server + setup + maintenance

One GPU server, setup by Pixelschnitzel, a flat maintenance fee. Models, updates and user growth included, with no token counter.

Hardware (one-off)snapshot · volatile
Setup & integrationtailored
Maintenancepredictable flat fee
Trend / 36 mo. significantly cheaper

Every project is individual, which is why there are no list prices. Hardware prices are currently highly volatile and only count as a same-day snapshot. With us, AI projects start from €10,000. On request we put together the full business case with concrete ROI comparing cloud vs. on-premise. Concrete figures after the 30-minute initial call, with no obligation.

The first 90 days

From first call
to a productive system.

Days 1–14 · Discovery

Audit & use case

2 workshop days on site

Which data can go in? Which use cases are genuinely worthwhile? We prioritise by effort × benefit, and tell you honestly what isn't worth it.

Days 15–45 · Setup

Hardware & models

Delivery · installation · configuration

Set up the server, install the models, configure the RAG pipeline. First tests with real sample data. Security audit in coordination with your IT.

Days 46–75 · Integration

Connections & RAG

Interfaces to your systems

ERP, DMS, mail, knowledge base, we connect what belongs connected. The AI answers questions about your company, not from the public internet.

Days 76–90 · Rollout

Training & go-live

Hands-on training · monitoring

We train your people, management, departments, IT. Monitoring is in place, the maintenance routine is running. You're productive and independent.

What you receive at the end

Concrete. Documented.
Usable in your business.

01
A working system

An AI system on your infrastructure or in your dedicated environment, installed, configured and adapted to your use cases.

02
Access to your own knowledge

A searchable knowledge base from internal documents, policies and process descriptions, on request with source references in the answers.

03
Architecture and operations docs

Clear documentation for IT, data protection and management. So your organisation can carry on its own what we've built.

04
Training & guardrails

An introduction for users and departments, including clear guidance on what the AI may and may not do, and where its limits lie.

Why Pixelschnitzel?

Consulting, software development and AI
from a single source
so concept and execution fit together.

  • A personal point of contact. Florian Brosig in person, from the first call to well after go-live. No handover to changing teams.
  • Experience with custom business software. Over 10,000 active users in existing systems we have built and supported.
  • BVMID Top Expert in AI. Recognised AI expertise, embedded in an association for mid-sized businesses, and not in a hype.
  • From the Ruhr region, deliverable across Germany. Based in Herne, short distances within NRW, projects nationwide, with the pragmatism that mid-sized companies value.
Frequently asked questions

The questions we
hear most often.

Is on-premise AI really at ChatGPT level?
For 80–90% of typical business tasks: yes. Llama 3.3 70B, Qwen 2.5 or Mistral Large deliver comparable results to GPT-4 in most benchmarks, and on certain tasks (RAG, structured extraction, German language) they're even better. For absolute top-end use cases there are hybrid setups where sensitive data stays local.
What does getting started actually cost?
Every project is individual, which is why there are no list prices. With us, AI projects start from €10,000. Hardware prices are currently highly volatile and only count as a same-day snapshot. We provide a concrete figure after the initial call — transparently broken down and, on request, with a full business case and concrete ROI. Thanks to our lean cost structure, we're priced better than the market for comparable services.
We don't have any server hardware. What now?
Two options: we procure and install on your premises (server, UPS, connectivity). Or you use hardware with a German host (e.g. Hetzner, IONOS, STRATO) and we configure it remotely. Both variants can be set up with privacy in mind, exactly how we clarify with your IT and data protection officer, depending on the specific setup.
What happens when the model becomes outdated?
Switching models is routine, no new server needed. Roughly every 6–12 months relevant open-source releases appear. We update them as part of maintenance. Unlike the cloud, you decide when to switch, or deliberately stay on a stable version.
How fast does the system respond?
With the right hardware choice: 200–800 ms for the first tokens. A full answer usually in 2–6 seconds. With very powerful GPU setups, faster still. Compared to the cloud: often slower, because internet latency is added.
We're a data processor for our clients. Does this fit?
On-premise AI can make particular sense in exactly such constellations, because the data flow can be controlled more tightly. Whether that's enough in your specific case depends on the contract and data protection concept involved. On request we support the related technical documentation for data protection and impact assessment.
We already use Microsoft Copilot. Isn't this the same thing?
No. Copilot runs on Microsoft infrastructure, so data processing sits with the provider. On-premise AI takes a different approach: models and applications run in an environment that you control. Which variant fits better depends on the use case, the protection requirements and the operating model.
Who is responsible when the AI makes mistakes?
As with any software, there's a responsibility for selection, operation and use. We build in safety nets, such as source references in RAG answers, clear "I don't know" responses instead of hallucinations, and documented limits of use. AI governance is part of every project.
Pricing & investment

Tailored.
And honestly calculated.

Every project is different, so we don't work with list prices. We make the numbers transparent before any investment — including a business case and a concrete ROI if you want one.

Software
from €5,000

Built around your business processes. From a small tool to a complete platform. What it costs and what it returns — we'll tell you after the first call.

Artificial Intelligence
from €10,000

RAG, chatbots, on-premise models, OCR, mail classification. We start where AI delivers measurable value — not where the hype is.

Hardware for on-premise AI
Snapshot

Server and GPU prices are highly volatile right now. We provide an up-to-date calculation before you approve any order.

Why we're more affordable

Lean structures. No sales machine that costs more than the development itself. No corporate overhead. Thanks to our lower cost structure, we're below market price for comparable work — provable in a side-by-side quote.

Business case & ROI

On request, we calculate a complete business case with a concrete ROI before the project starts. So you decide on impact, not on price.

Our promise

As soon as a problem is technically solvable, we're on it. There is no "can't be done" here without a reason — and usually with a pragmatic alternative.

Sovereign.
Initial call about on-premise AI

Want to use AI
without losing control
over your data?

In 30 minutes we'll work out together which use cases make sense for you, which operating models are worth considering and what a first, manageable step could look like. No slides, no sales pitch.