Learn / Hosted vs self-hosted LLM inference
Hosted vs self-hosted LLM inference
Hosted inference runs your model on a provider's managed infrastructure, while self-hosted inference runs it on infrastructure you control (on-prem or in your own VPC). Hosted is faster to start and operate; self-hosted gives you more control over data, cost, and compliance. Some platforms, including Netra Runtime, support both.
At a glance
| Dimension | Hosted | Self-hosted |
|---|---|---|
| Setup | Fast; managed for you | More setup; you run it |
| Control over data | Provider environment | Stays in your environment |
| Ops burden | Low | Higher; you manage capacity |
| Cost model | Usage-based; pay for what you use | Can be efficient at steady, high utilization |
| Best for | Fast start, variable load | Data control, compliance, steady scale |
When to choose which
Choose hosted when you want to move fast, have variable or lower-volume traffic, and prefer not to manage GPUs. Choose self-hosted when you need data to stay in your own environment, have compliance requirements, or run steady, high-volume load where owning the infrastructure is more efficient. Many teams use both — hosted to start, self-hosted as scale and control needs grow.
How Netra helps
Netra Runtime supports both models: run hosted, or deploy on infrastructure you own — on-prem, in your VPC, or self-hosted — all through the same OpenAI-compatible API. That means you can start hosted and move to self-hosted without rewriting your application. Learn what Netra Runtime is or how to deploy a fine-tuned LLM.
Frequently asked questions
What is the difference between hosted and self-hosted inference?
Hosted inference runs your model on a provider's managed infrastructure, while self-hosted inference runs it on infrastructure you control, such as on-prem or your own VPC. Hosted is faster to operate; self-hosted gives you more control over data, cost, and compliance.
Is self-hosted inference cheaper?
It can be at steady, high utilization, but it adds operational cost and requires you to manage capacity. Hosted can be cheaper for variable or lower-volume workloads because you only pay for what you use.
Does Netra Runtime support both hosted and self-hosted?
Yes. Netra Runtime can be deployed hosted or on infrastructure you control — on-prem, in your VPC, or self-hosted — all through an OpenAI-compatible API.