I wouldn't bet on local compute. Even if it may end up cheaper in the long run, the convenience of just another SaaS subscription sure beats the high upfront const and continuous maintenance required with local deployments.

We've seen businesses moving everything to the cloud before AI, we'll see more of that as regulatory requirements are increasing.

I agree that the SaaS solution will be a winner, but the price diff cannot be too big or it would be too economical to run it yourself.