Jul 15 2026
Artificial Intelligence

Why the Right Infrastructure for Your AI Workloads Might Be Hybrid

IT teams are turning to hybrid environments to meet their needs for a variety of artificial intelligence use cases.

As organizations become more experienced with using artificial intelligence in their workflows, they are looking to optimize operations with the technology infrastructure that best meets their needs. For a growing number of businesses, this means running AI workloads in hybrid environments. 

In fact, IDC predicts that by 2028, 75% of enterprise AI workloads will be deployed on hybrid infrastructure.

“The future of the data center is hybrid,” says Sana Gutierrez, senior manager of the data and artificial intelligence practice at CDW. “There are organizations that are going to decide to begin within a cloud environment, and that posture completely can change. They need to understand how they want to take workloads, whether they’re in the cloud, on-premises or in a neocloud — and put them in the right place to gain maximum benefit.”

As organizations look to build out infrastructure that can support AI into the future, they are strategizing around meeting specific business needs, where to place workloads and how to align their AI efforts with their desired outcomes.

LEARN MORE: Click here to see how you can optimize your artificial intelligence initiatives.

Matching Infrastructure to Business Needs

One of the key benefits of hybrid infrastructure is that it allows IT teams to place workloads where they can best meet their needs. For example, the public cloud is a good option for AI workloads that may involve experimentation or need burst capacity, while a public cloud is wellsuited for workloads involving sensitive data. Similarly, on-premises clusters of GPUs can handle predictable, large-scale inferencing workloads. 

“Whether an AI workload is running in the cloud or on-premises is going to depend on the organization’s specific needs for artificial intelligence,” says Mariano Carro, principal field solutions architect for Microsoft hybrid infrastructure at CDW. “Most of the time, we are going to need some resources in the cloud to do the training and for the high level of compute that we need. But once we get that training complete, we may move a workload on-premises to improve performance or protect data privacy.”

Hybrid infrastructure helps IT teams control costs and deal with GPU scarcity while maintaining data sovereignty and supporting demands for compliance with data regulations such as HIPAA and the European Union’s General Data Protection Regulation. By that data is kept close to processing capabilities, it can also minimize latency.

Click the banner below to learn how organizations are unlocking artificial intelligence’s potential.

 

Workload Placement: Putting Your AI Where Your Data Resides

Workload placement decisions are rarely static. As organizations mature in their use of AI, they often revisit where applications run based on changing cost structures, performance needs and governance requirements.

“Workload placement is going to take into consideration things like latency as well as accessibility,” says Eryn Brodsky, server and storage practice lead at CDW. “Businesses need to think about what AI outcomes they want to leverage the data. You need to have quick access to it, but you also have to ensure that you have proper access to it.”

That balancing act frequently leads to movement between environments over time. Many organizations begin their AI journeys in the cloud, drawn by its flexibility and access to large-scale compute. But as workloads stabilize and costs become clearer, some shift those workloads back into their own environments.

“It’s not uncommon for us to see customers starting in the cloud, as the majority of our customers are, then bringing those applications back on-premises. We call it repatriation,” Brodsky says. “They repatriate those workloads on-prem because they have to consider the cost of maintaining those applications and those workloads in the cloud versus the cost of being able to invest in the architecture to support them.”

Cost optimization is only one piece of the equation. Performance and efficiency also play a major role, particularly as AI workloads scale and demand more specialized infrastructure.

DIG DEEPER: Discover how token-based pricing is affecting organizations' AI strategy.

“What we’re looking for is lowest cost per function or lowest cost per token,” Gutierrez says. “Leveraging all of the available optimizations — whether it’s through power and cooling, accelerated infrastructure, better data pipelines, better data posture — is really important to achieving the desired outcomes, reducing latency and getting users the information that they need when they need it.”

Those optimizations increasingly depend on how well organizations align their compute resources to the specific needs of AI workloads. In particular, the relationship between CPUs and GPUs has become a critical factor in modern data center design.

“Advancements in accelerated compute are really important when thinking about the data center of the future,” Gutierrez says. “There are certain applications and certain data center processes that simply work better on a GPU. So, understanding the GPU-CPU relationship in your data center and what workloads or what jobs you can assign to each of those is really important in optimizing your infrastructure.”

How Microsoft Azure Local Helps Businesses With AI

As organizations navigate these decisions, platforms that unify management across environments are becoming increasingly valuable. Microsoft’s Azure Local offers one such option, enabling businesses to build and scale AI infrastructure while maintaining flexibility in where workloads run.

“Businesses need an infrastructure that can grow with their needs, and with Azure Local, you can do that,” Carro says. “You can begin small, and then you can add modularly to satisfy the needs of your artificial intelligence.”

A key advantage of Azure Local is its ability to provide consistent management across hybrid environments. With centralized oversight, IT teams can more easily control resources, enforce policies and ensure workloads are running in the most effective locations.

“Centralized control through Azure Arc is going to give us the way to manage our GPUs, our policies and our workloads across on-premises and the cloud,” Carro says. “This makes it easier for IT teams to scale artificial intelligence consistently without having operational problems, because we are watching everything on the same control panel.”

Eryn Brodsky headshot
Businesses need to think about what AI outcomes they want to leverage the data. You need to have quick access to it, but you also have to ensure that you have proper access to it.”

Eryn Brodsky Server and Storage Practice Lead, CDW

The platform also addresses one of the core challenges of AI performance: proximity to data. By enabling GPU-accelerated infrastructure on-premises while still connecting to cloud resources, Azure Local supports both speed and scalability.

“Because AI performance depends on proximity to the data and access to acceleration, we need to have GPU-enabled platforms like Azure Local,” Carro says. “This allows you to have all of your information on-premises for AI, but you could also get resources from the cloud in a hybrid environment to be able to run faster and have better results.”

Aligning Infrastructure With Outcomes

Ultimately, the value of hybrid infrastructure comes down to how well it aligns with business goals. Organizations that take a thoughtful approach to workload placement, cost management and performance optimization are better positioned to realize meaningful returns from their AI investments.

Organizations may derive numerous benefits by aligning their IT infrastructure with their AI strategy, but the financial outcomes are perhaps the most significant.

“When organizations get AI and accelerated compute right, there is a material benefit to the bottom line of any organization,” Gutierrez says.

piranka/Getty Images
Close

New Research from CDW on Workplace Friction

Learn how IT leaders are working to build a frictionless enterprise.