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On-Premises Deployment with vLLM

Standing up a production inference cluster on your own hardware: vLLM setup, GPU sizing, Kubernetes deployment, load balancing, monitoring and cost modelling against cloud alternatives.

Editorial owner: Shilpa Pawar · Editorial standards and corrections

Numerical scenarios are illustrative unless a source is linked. Validate operational, legal, financial, and regulatory decisions against current primary guidance and your own baseline.

When edge means your data centre

Not all edge AI runs on employee devices. For many enterprises, "edge" means "our own data centre, not someone else's cloud." The data never leaves your network, but it is served from centralised infrastructure that you control.

This is the on-premises deployment pattern: a GPU cluster in your data centre (or co-location facility) running an open-source inference engine, serving your entire organisation through an internal API. Employees use AI through internal applications, but every inference request is processed on hardware you own, in a facility you control, under your security policies.

vLLM is the production standard for this pattern. It is an open-source inference engine that provides:

  • High throughput: PagedAttention for efficient KV cache management, continuous batching for maximising GPU utilisation
  • OpenAI-compatible API: Drop-in replacement for applications currently using OpenAI's API
  • Broad model support: Gemma, Llama, Mistral, Qwen, Phi, and most Hugging Face models
  • Quantisation support: AWQ, GPTQ, GGUF, bitsandbytes -- serve quantised models with minimal configuration
  • Tensor parallelism: Split a single model across multiple GPUs for larger models or higher throughput
Quick question

Your organisation currently uses the OpenAI API for an internal document analysis tool. You want to migrate to on-premises for data sovereignty. What is the lowest-friction migration path?