Skip to content
MarketScale
Demo
‹ Back to IndustriesSoftware & Technology

On-Prem or Cloud? Either Way, Data Center Compute Demands Necessitate the Need for AI Accelerators

With the increasing demand for powerful data center compute capabilities, data centers are at the forefront of driving the need, development, and purchase of AI accelerators. This surge is influenced by the expanding role of AI in business operations, creating a critical demand for advanced hardware solutions. How are data centers shaping the…

This story was produced through MarketScale. See how Software & Technology teams put it to work with Executive Thought Leadership.

By Mark Beccue · Ai AcceleratorsData Center ComputeData CentersExperts Talk
Share

Key takeaways

01

With the increasing demand for powerful data center compute capabilities, data centers are at the forefront of driving the need, development, and purchase of AI accelerators.

02

This surge is influenced by the expanding role of AI in business operations, creating a critical demand for advanced hardware solutions.

03

How are data centers shaping the…

Get featured

Want to get featured in MarketScale Software & Technology?

Create a free MarketScale workspace and get your company's expertise featured across our Software & Technology coverage. No credit card, no demo required.

Start free

With the increasing demand for powerful data center compute capabilities, data centers are at the forefront of driving the need, development, and purchase of AI accelerators. This surge is influenced by the expanding role of AI in business operations, creating a critical demand for advanced hardware solutions.

How are data centers shaping the landscape of AI compute, and what strategic decisions should businesses consider in this evolving environment?

In a recent Experts Talk roundtable discussion, Mark Beccue, a top AI market research analyst, expanded on the nuances of data center compute and the pivotal role of AI accelerators. His expert analysis offers valuable insights into the current trends and strategic considerations for enterprises navigating this complex terrain.

Main Takeaways from Mark Beccue’s Analysis:

  • Data Center Compute: Heavy computational loads handled by data centers fall into two categories: on-premises (on-prem) and cloud-based solutions
  • Enterprise Decisions: Enterprises must choose between investing in on-prem data centers or leveraging cloud services from providers like Amazon, Azure, and Google
  • Pros and Cons: Cloud services offer quick deployment and scalability, but data security remains a significant concern for many companies
  • Market Trends: The limited availability of compute resources in the market drives strategic decisions about whether to build on-prem from scratch or rely on cloud services
  • Strategic Considerations: Enterprises need to weigh the benefits of speed and scale against the challenges of data security and management when choosing their AI infrastructure

For a more in-depth discussion, view the complete roundtable conversation.

Article by MarketScale

Video TranscriptExpand ↓

A little bit is, I'm gonna focus back on what's called data center, you know, compute. So that's the really heavy load computes. What you have is cloud versus on prem. And, so you have a lot of enterprises that have their own data centers, and they they call that on prem. And they and so you ask where these things get bought. The those all of these sophisticated accelerators get bought in the data centers either on prem, so that's an enterprise buying it themselves, or by the cloud players being, you know, the Amazons, the, Azures, you know, Google, and those types of things. And what there's a debate, I guess. You know, you can say, it's not a real great time to start building your on prem if you wanna start from scratch. But, you know, compute is a a a narrow it's a limited commodity right now, I think, we're seeing in the marketplace. So a lot of enterprises are making decisions. If they don't have on prem, they're everybody's thinking about the cloud. Is this a good idea or not? You know, there are pros and cons to those things. The pros being you're up and running much quicker. There's some scale to that. The cons being, you know, how you handle your data. Security is always an issue for lots of companies, but that's where I would say is kinda one of the bigger challenges around what we're talking about.

Your experts belong here

Every story in MarketScale Software & Technology starts with a company putting its solutions engineers, product teams, and customer engineers on the record. Buyers are already reading this topic. The only question is whose experts they find.

Buyers ask AI engines who to consider, and published expert answers are what those engines cite.

Get your team featuredSee how it works15 minutes, straight to a calendar.

About the author

Mark Beccue
Mark BeccueResearch Director

Mark Beccue is a veteran market research analyst with more than 25 years of experience in market research and business strategy. Mark is one of a handful of pioneering analysts who began to focus on AI market research in 2015. Today with Futurum Group and previously as a principal analyst within the AI practice area at Omdia and Tractica, he has advised clients and provided them with syndicated and custom qualitative AI research services. His expertise in AI use cases, applications and software, natural language AI and broader trends surrounding AI market adoption have made him a well-known and sought after speaker, panel moderator, conference chair and media resource within the AI business community. He has served in those roles for events including the AI Summits in London, Singapore, New York and Silicon Valley, IOT World, Smart Home Summit, UX Next and Telco AI Europe. Prior to joining Tractica, Mark was an independent market research analyst focused on emerging technologies. Before going independent, Mark served as in house market intelligence analyst for Syniverse, where he helped guide overall business and product line strategies. For 4 years Mark worked as a Senior Analyst for ABI Research, a global technology research firm, focusing on mobile consumer services. Prior to ABI, Mark worked for 10 years for Syniverse in product management, greenhouse innovation and marketing. Specialties: AI B2B and B2C market intelligence, analysis and insights. Natural Language AI. Operationalizing AI in the Enterprise. AI market adoption trends and issues. Strengths - AI and other technical market analysis designed for business readers, writing, thought leadership, forecasting, market sizing

Follow Software & Technology Insights

Get new expert content in your inbox.

Software & Technology: are you visible to AI?

Before they reach out, Software & Technology buyers ask AI engines which vendors to trust. Explore how your experts, customers, and partners can become useful content for buyers and AI search.

Free plan

You just read one Software & Technology expert. Your company is full of them.

This article was produced through MarketScale. The same platform turns your solutions engineers, product teams, and customer engineers into the articles, video, and social content Software & Technology buyers are searching for. Create a free workspace and see it with your own people. No credit card, no demo required.

NPS +73 · 1,000+ creators · 38+ countries

What you get, free

Your own MarketScale workspace, up to 10 people
One professional video edit a month for qualifying companies
Media requests to your crowd, remote recording, AI writing tools
$0, no credit card, nothing that expires

More Software & Technology Insights

AeroVironment Wins $464.8M Army Laser Deal, First LOCUST Export Order

AeroVironment Wins $464.8M Army Laser Deal, First LOCUST Export Order

On Sept. 2, 2026, AeroVironment announced a $464.8 million U.S. Army contract for the Enduring-High Energy Laser program built on its LOCUST laser system. On Sept. 8, 2026, the company announced its first international purchase order for LOCUST, valued at more than $50 million.

  • 01$464.8 million Army contract for LOCUST X3 systems structured as an Other Transaction Agreement, with deliveries planned over the next few years
  • 02LOCUST X3 is a 30-kilowatt platform-agnostic system planned for JLTV and palletized configurations, with Infantry Squad Vehicle integration still under evaluation
  • 03AeroVironment received its first international purchase order for over $50 million but has not disclosed the customer or delivery timeline

Sep 13, 2026

Survey: AI Boosts Productivity, but Few Firms See Profit Impact

Survey: AI Boosts Productivity, but Few Firms See Profit Impact

McKinsey's 2026 survey found 80% of respondents said AI improved their individual productivity, but only 37% reported AI contributing to their organization's EBIT, a share essentially unchanged from the prior year. Deloitte's parallel 2026 research found companies split between surface-level AI use (37%), redesigning key processes (30%), and deeper transformation of products or business models (34%).

  • 01Most respondents say AI has boosted their individual productivity, but only 37% say it has contributed to their organization's EBIT.
  • 02Enterprises report individual productivity gains from AI, but most have yet to see it contribute to earnings.
  • 03There is a disconnect between productivity gains from AI and actual profit impacts.

Sep 13, 2026

Sanity Adds Agent Context to Its Content Platform

Sanity Adds Agent Context to Its Content Platform

On March 4, 2026, Sanity announced a set of AI features, including Agent Context, Content Agent, Functions, an Agent API, and an MCP server, according to PR Newswire. The release also cited Complex and loveholidays as customer examples of the platform in use.

  • 01Agent Context compresses Sanity schema so AI agents translate natural-language requests into queries, rather than relying on embeddings
  • 02Sanity's Content Agent automates editorial operations like auditing pages, identifying gaps, and staging updates within existing workflows
  • 03External AI agents access structured content through an MCP server with governed access, reducing duplicate data stores and custom integration work

Sep 13, 2026

Explore More Software & Technology Insights

Read more expert perspectives from across Software & Technology.

Browse Software & Technology Hub

About the Expert

Mark Beccue
Mark Beccue

Research Director

Mark Beccue is a veteran market research analyst with more than 25 years of experience in market research and business strategy. Mark is one of a handful of pioneering analysts who began to focus on AI market research in 2015. Today with Futurum Group and previously as a principal analyst within the AI practice area at Omdia and Tractica, he has advised clients and provided them with syndicated and custom qualitative AI research services. His expertise in AI use cases, applications and software, natural language AI and broader trends surrounding AI market adoption have made him a well-known and sought after speaker, panel moderator, conference chair and media resource within the AI business community. He has served in those roles for events including the AI Summits in London, Singapore, New York and Silicon Valley, IOT World, Smart Home Summit, UX Next and Telco AI Europe. Prior to joining Tractica, Mark was an independent market research analyst focused on emerging technologies. Before going independent, Mark served as in house market intelligence analyst for Syniverse, where he helped guide overall business and product line strategies. For 4 years Mark worked as a Senior Analyst for ABI Research, a global technology research firm, focusing on mobile consumer services. Prior to ABI, Mark worked for 10 years for Syniverse in product management, greenhouse innovation and marketing. Specialties: AI B2B and B2C market intelligence, analysis and insights. Natural Language AI. Operationalizing AI in the Enterprise. AI market adoption trends and issues. Strengths - AI and other technical market analysis designed for business readers, writing, thought leadership, forecasting, market sizing

LinkedIn

For Software & Technology teams

See how Software & Technology teams use MarketScale →

Executive Thought Leadership

Explore Channels

Industry news, analysis, and expert perspectives

Professional AV›Engineering & Construction›Education Technology›Healthcare›Energy›Software & Technology›Retail›Business Services›Industrial IoT›Sports & Entertainment›Transportation›Sciences›Building Management›Food & Beverage›Architecture & Design›Hospitality›Marketing Tech›
Keep exploring

More from Software & Technology

Software & Technology hubMore expert Software & Technology coverage.Explore →Executive Thought LeadershipMake your experts the authority.Explore →ImprovingTech training, turned to media.Explore →State of GEO & AI VisibilityHow B2B brands get cited by AI search.Explore →

For B2B teams

Your experts could be publishing here

Stories like this one run on content MarketScale captures from real practitioners. See how your team's expertise becomes coverage in Software & Technology and beyond.

Book a 15-minute demo

Or call us. No forms required. We pick up. 214-945-2512