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Silicon Flash > Blog > Business > Embracing AI: Small Businesses Adapt Data Strategies for Success
Business

Embracing AI: Small Businesses Adapt Data Strategies for Success

Published February 14, 2026 By Juwan Chacko
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Embracing AI: Small Businesses Adapt Data Strategies for Success
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Artificial Intelligence (AI) is revolutionizing data strategies for small and medium-sized businesses (SMBs). One common approach is to deploy AI in the cloud, especially for SMBs lacking modern on-premises infrastructure. Cloud platforms offer quick access to computing resources, making them ideal for initial experimentation and proofs of concept.

AI Implementation in the Cloud vs. On-Premises

Contents
AI Implementation in the Cloud vs. On-PremisesHybrid SMB Environments and Data Governance

While launching AI in the cloud may seem cost-effective at first, the financial dynamics change when transitioning to production. According to Brodsky, AI workloads demand substantial resources, and long-term cloud usage may not be the most economical option for SMBs. As businesses scale their AI usage, unpredictable cloud costs can become a concern. In such cases, running consistent, data-heavy workloads on-premises can offer more predictable expenses over time.

Moreover, performance plays a crucial role in decision-making. AI tasks like inference, analytics, and data processing often benefit from low latency. Brodsky emphasizes that for time-sensitive operations, having data in close proximity to the business is essential, which may not always align with cloud infrastructure.

Hybrid SMB Environments and Data Governance

Considerations around data governance also influence AI deployment choices. Storing sensitive data on-premises can provide small IT teams with better visibility and control, particularly in industries with regulatory or privacy requirements. Brodsky highlights the importance of control and the associated risks of on-premises data management.

Rashid Rodriguez underlines that cloud platforms offer inherent protections like geographic redundancy and disaster recovery, features that may not be readily available when workloads are moved back on-premises. Ensuring the same level of protection becomes crucial for SMBs transitioning workloads.

See also  Top 5 Must-Have IT Tools for Small Businesses and Startups

For small businesses, reassessing backup and recovery strategies is key. This includes implementing immutable backups and automated recovery processes to minimize manual intervention.

TAGGED: adapt, businesses, data, Embracing, small, Strategies, Success
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