Neoclouds are becoming an attractive option with GPU shortages slowing down AI initiatives, says Bijit Ghosh, managing director of AI/ML, data, and cloud at banking firm Wells Fargo. While Wells Fargo hasn’t yet moved to a neocloud, the company is evaluating the options, he adds.
“The most significant advantage is access to GPUs without the multi-month waitlists we’ve seen with hyperscalers,” he says. “As a bank, when we have a new risk model or fraud detection AI ready, the last thing we want is to wait 90 days for [Nvidia] A100s.”
Cost can also be an advantage. While neoclouds aren’t always cheaper in dollars per hour than AWS or Azure, their pricing can be more predictable because of fewer hidden costs for data egress or storage, Ghosh says.
