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🖥️ On-Premise Hardware Shopping List

Complete Infrastructure Guide for Hybrid Cloud Deployment

Minimize Azure costs • Maximize IP protection • Own your infrastructure

🎯 Strategic Objective

Minimize Azure Costs While Maximizing:

✅ IP Protection

Keep proprietary code, algorithms, and data on-premise where you control access

✅ Performance

Local processing eliminates cloud latency - 10-100x faster for backend operations

✅ Control

Own your infrastructure - no vendor lock-in, no throttling, no surprise bills

✅ Cost Efficiency

One-time hardware investment vs. perpetual monthly Azure bills

Azure's Role (Bare Minimum)

Current Azure Spend: $260/month (Azure SQL Nova_StaX_DB only)
Full System Projection: $2,000-3,000/month (all databases + compute + AI/ML + storage)
Target Azure Cost with On-Premise: $175-275/month (minimal CDN + auth + public endpoints)
Monthly Savings: $1,725-2,825/month = $20,700-33,900/year

🛒 Hardware Options

Option 1: Single Powerful Workstation

Budget
$5,000 - $8,000
Best for: Small team, development + production on one machine
Component Specification Purpose Est. Cost
CPU AMD Ryzen 9 7950X (16-core, 32-thread) Multi-threaded processing, AI workloads $550-700
RAM 128GB DDR5 (4x32GB) 5600MHz Multiple databases, containers, AI models $400-500
GPU NVIDIA RTX 4090 24GB AI/ML inference, video processing $1,600-2,000
Storage (NVMe) 2TB Samsung 990 Pro (OS + Apps) Fast system drive $180-220
Storage (NVMe) 4TB Samsung 990 Pro (Databases) Database storage $350-400
Storage (SSD) 8TB Samsung 870 QVO (Backups) Local backups, archives $500-600
Motherboard ASUS ROG Strix X670E-E PCIe 5.0, multiple NVMe slots $400-500
PSU 1000W 80+ Platinum Power for GPU + system $180-250
Case Fractal Design Define 7 XL Airflow, noise dampening $180-220
Cooling Arctic Liquid Freezer II 360mm CPU cooling $100-150
UPS CyberPower 1500VA Power protection $200-300
Network 10GbE Network Card (Intel X550-T2) Fast local network $150-200

Option 2: Dual-Server Setup (RECOMMENDED)

Budget
$10,000 - $15,000
Best for: Separation of dev/prod, high availability, team collaboration

Production Server

  • AMD Ryzen 9 7950X or Intel Xeon W-2400
  • 128GB DDR5 ECC RAM
  • NVIDIA RTX 4090 24GB (for AI inference)
  • 2TB + 4TB + 8TB storage
  • 10GbE networking

Subtotal: $4,610-$5,890

Development Server

  • AMD Ryzen 9 7900X (12-core)
  • 96GB DDR5 RAM (enhanced)
  • NVIDIA RTX 4080 16GB
  • 2TB + 2TB storage
  • 10GbE networking

Subtotal: $3,620-$4,650

Networking & Storage

  • Synology DS1621+ 6-bay NAS
  • 6x 8TB WD Red Plus (24TB RAID 10)
  • 10GbE Managed Switch (8-port)
  • UniFi Dream Machine Pro

Subtotal: $2,100-$2,700

Option 3: Enterprise Rack Setup

Budget
$72,000 - $136,000
Best for: Full quantum processing, multi-brand high availability, enterprise AI/ML
Why Enterprise-Grade? Full quantum tensor processing, redundant database clusters, dedicated AI inference servers, enterprise storage (144TB+), complete disaster recovery
Component Specification Est. Cost Purpose
Primary Database Cluster 2x Dell PowerEdge R750 (EPYC 32-core, 256GB RAM, 11.5TB NVMe RAID 10) $22,400 High Availability SQL Server Always On, Nova_StaX_DB + all brand DBs
Application Servers 2x Dell PowerEdge R650 (EPYC 24-core, 128GB RAM) $9,400 Flask apps, Node.js, Python APIs for all 8 brands
AI/ML Inference Server Workstation: Threadripper PRO, 256GB RAM, 2x RTX 6000 Ada (48GB VRAM) $20,050 EnableYou AI, patent analysis, image recognition, NLP
Quantum Tensor Server Custom: 2x EPYC 9654 (96-core), 1TB DDR5 ECC, 8TB NVMe scratch $35,900 QFI³ Quantum Conductor, tensor state calculations (IP-protected)
Enterprise NAS (Primary) Synology RS4021xs+ 16-bay, 16x 18TB drives (144TB usable RAID 6) $10,900 Centralized storage, backups, media assets
Backup NAS (Offsite) Synology RS3621xs+ 12-bay, 12x 12TB drives (96TB usable) $7,200 Disaster recovery, offsite replication
42U Server Rack + Infrastructure Rack, PDU, APC UPS 3000VA, cable management $2,500 Physical infrastructure housing
Network Infrastructure 10Gb/25Gb switch, firewall (Fortinet/pfSense), VPN, cables $3,500 High-speed LAN, security, remote access
SQL Server Licensing SQL Server 2022 Standard (32 cores) $6,400 Enterprise database licensing (or use free Developer Edition)
Monitoring & Management IP KVM, environmental monitoring, tools $1,500 Remote management, thermal monitoring
BUDGET ENTERPRISE TOTAL $72,000 Without quantum server, single DB server, budget GPUs
FULL ENTERPRISE TOTAL $136,000 Complete system as specified above

Enterprise ROI Analysis

Full Enterprise ($136K) vs. Azure ($3K/mo):

  • Break-even: 45 months (3.75 years)
  • 5-year savings: $44,000
  • 10-year savings: $224,000

Budget Enterprise ($72K) vs. Azure ($2.5K/mo):

  • Break-even: 29 months (2.4 years)
  • 5-year savings: $78,000
  • 10-year savings: $228,000

Value Beyond Cost Savings:

  • 🛡️ Complete IP protection for quantum algorithms
  • ⚡ 10-100x faster local processing (1-10ms vs. 50-200ms cloud)
  • 🔒 HIPAA/GDPR compliance with on-premise medical/EU data
  • 💪 Unlimited compute - no throttling or quota limits
  • 🚀 Dedicated quantum tensor processing (impossible in cloud)

🌐 Hybrid Cloud Architecture

┌─────────────────────────────────────────────────────────┐ │ ON-PREMISE INFRASTRUCTURE │ ├─────────────────────────────────────────────────────────┤ │ │ │ 🖥️ PRODUCTION SERVER │ │ ├─ Flask Backend APIs (all brands) │ │ ├─ PostgreSQL Databases (Nova_StaX_DB, etc.) │ │ ├─ Redis Cache │ │ ├─ Docker Containers │ │ └─ NGINX Reverse Proxy │ │ │ │ 🖥️ DEVELOPMENT SERVER │ │ ├─ AI/ML Training (local GPU) │ │ ├─ Video Processing (Synthesia alternative) │ │ ├─ Development Environments │ │ ├─ Testing & Staging │ │ └─ CI/CD Pipeline (Jenkins/GitLab Runner) │ │ │ │ 💾 NAS (SYNOLOGY) │ │ ├─ Centralized File Storage │ │ ├─ Automated Backups (3-2-1 strategy) │ │ ├─ Media Assets │ │ └─ Database Snapshots │ │ │ │ 🌐 NETWORKING │ │ ├─ 10GbE LAN (servers + NAS) │ │ ├─ VPN Access (remote work) │ │ ├─ Firewall (pfSense/OPNsense) │ │ └─ DDoS Protection │ │ │ └─────────────────────────────────────────────────────────┘ ↕️ INTERNET ↕️ ┌─────────────────────────────────────────────────────────┐ │ AZURE (BARE MINIMUM) │ ├─────────────────────────────────────────────────────────┤ │ │ │ 🌍 AZURE FRONT DOOR / CDN │ │ ├─ Global content delivery │ │ ├─ DDoS protection │ │ ├─ SSL/TLS termination │ │ └─ Static frontend hosting │ │ │ │ 🔐 AZURE AD (ENTRA ID) - Optional │ │ ├─ User authentication │ │ ├─ SSO (Single Sign-On) │ │ └─ MFA (Multi-Factor Auth) │ │ │ │ 📧 AZURE COMMUNICATION SERVICES - Optional │ │ ├─ Email delivery │ │ └─ SMS notifications │ │ │ │ 💰 ESTIMATED COST: $50-150/month │ │ (vs. current $868/month) │ │ │ └─────────────────────────────────────────────────────────┘

IP Protection Strategy

🔒 What Stays On-Premise (Protected)

  • Proprietary code & algorithms
  • Customer databases
  • AI models & training data
  • Business logic & workflows
  • API keys & secrets
  • Media assets

🌍 What Goes to Azure (Public)

  • Static frontend (HTML/CSS/JS)
  • CDN cached assets
  • DNS management
  • Optional: Auth gateway

💰 ROI Analysis

5-Year Cost Comparison (Conservative Estimates)

Scenario Year 1 Year 2 Year 3 Year 4 Year 5 TOTAL
Azure-Only (Minimal $2K/mo) $24,000 $24,000 $24,000 $24,000 $24,000 $120,000
Azure-Only (Full System $3K/mo) $36,000 $36,000 $36,000 $36,000 $36,000 $180,000
Hybrid (Dual-Server $14K) $17,100 $3,100 $3,100 $3,100 $3,100 $29,500
Hybrid (Enterprise $72K) $75,100 $3,100 $3,100 $3,100 $3,100 $87,500
SAVINGS (Dual-Server vs $2K Azure) +$6,900 +$20,900 +$20,900 +$20,900 +$20,900 +$90,500
SAVINGS (Dual-Server vs $3K Azure) +$18,900 +$32,900 +$32,900 +$32,900 +$32,900 +$150,500
Break-even Point (Dual-Server): Month 7-9 (conservative estimate)
5-Year Savings: $90,500-150,500 (vs. Azure-only approach)
Enterprise Option Savings: $32,500-92,500 (5-year, includes full redundancy + quantum compute)
Plus: IP protection, 10-100x faster local ops, no data egress fees, unlimited bandwidth, HIPAA/GDPR control

Real-World Azure Cost Breakdown (Current + Projected)

Service Current Full System Projection Notes
Azure SQL Database (Nova_StaX_DB) $260/mo $260-1,460/mo Current: Basic tier. Projected: All brand DBs
Azure App Service (Flask apps) $13-55/mo $200-400/mo Current: B1 tier. Projected: P2V3 for 8 brands
Azure Cosmos DB (future product SKUs) $0 $25-400/mo Serverless tier for e-commerce
Azure Blob Storage (media) ~$5/mo $50-200/mo Product images, video content
Azure AI Search (documentation) $0 $75-250/mo Basic tier for full-text + vector search
Azure Front Door / CDN $0 $35-100/mo Global distribution, WAF, DDoS protection
Azure API Management $0 $50-500/mo API gateway, rate limiting
Azure AI Services (EnableYou AI) $0 $100-300/mo GPT-4, embeddings, vision APIs
Azure Machine Learning $0 $200-500/mo Model training, inference compute
TOTAL AZURE MONTHLY $278-320/mo $995-3,610/mo Conservative: $2K-3K/mo realistic

Enhanced Configuration ROI

Configuration Initial Cost Annual Operating Break-Even 5-Year Savings
Original Dual-Server $10,500 $1,800 14 months $30,080
Enhanced (Recommended) $14,435 $6,000 20 months $15,000-25,000

📦 Detailed Shopping List

Production Server Components

Production Server Subtotal: ~$5,160-$6,590

Development Server Components

Development Server Subtotal: ~$3,495-$4,375

Networking & Storage Infrastructure

Networking Subtotal: ~$2,950-$3,800

Enhanced Additions

Enhanced Additions: ~$1,450-$1,600

TOTAL ENHANCED CONFIGURATION
$13,055 - $16,365
Average: ~$14,435

🔧 Strategic Enhancements

GPU Strategy Optimization

Production Server: Use RTX 4090 24GB (AI inference needs more VRAM)
Development Server: Use RTX 4080 16GB (training can use smaller batches)

Storage Performance Tier

Add Intel Optane P5800X 800GB (~$800) to Production Server for:

Network Redundancy

Dual 10GbE NICs per server for:

NAS Configuration

Standard Config

DS923+ 4-bay

4x 8TB RAID 5

24TB usable

Enhanced Config ✅

DS1621+ 6-bay

6x 8TB RAID 10

24TB usable

2x IOPS performance

Internet Connectivity Requirements

Service Specification Monthly Cost
Primary ISP Business Fiber 1Gbps symmetric + Static IPs $150-350
Backup ISP Starlink Business (100-200 Mbps) $250
Total Internet $400-600/month

🚀 Phased Implementation Plan

Phase 1: Single Server Setup (Week 1-2)

Budget: $5,000-$7,000

  1. Purchase & build production server
  2. Install Ubuntu Server 22.04 LTS + Docker
  3. Migrate databases from Azure SQL to PostgreSQL
  4. Deploy backend in Docker containers
  5. Configure NGINX reverse proxy
  6. Set up minimal Azure (CDN + DNS)

Result: Fully functional hybrid setup, immediate cost savings

Phase 2: Add Development Server (Week 3-4)

Budget: +$3,500-$4,500

  1. Purchase & build dev server
  2. Separate dev/testing environments
  3. Set up CI/CD (GitLab CE)
  4. Configure automated testing pipeline

Result: Dev/prod separation, dedicated AI resources

Phase 3: Add NAS & Networking (Week 5-6)

Budget: +$2,000-$3,000

  1. Purchase Synology NAS + drives
  2. Upgrade to 10GbE network
  3. Configure automated backups (3-2-1 strategy)
  4. Set up UniFi Dream Machine Pro

Result: Enterprise-grade storage and networking

Free/Open-Source Software Stack

Category Software Cost
Operating System Ubuntu Server 22.04 LTS FREE
Containerization Docker + Docker Compose + Portainer FREE
Databases PostgreSQL + Redis FREE
Web Server NGINX FREE
Monitoring Grafana + Prometheus + Uptime Kuma FREE
Backups Duplicati + Synology Active Backup FREE
CI/CD GitLab CE + Jenkins FREE
VPN WireGuard + Tailscale FREE
Total Software Cost $0

⚡ Performance Benefits

⚡ Zero Latency

No internet round-trip for backend operations

1-10ms vs. 50-200ms cloud

⚡ Local GPU

AI inference in milliseconds

vs. cloud API calls

⚡ 10GbE LAN

10 Gbps internal network

vs. cloud bandwidth limits

⚡ No Throttling

Direct database access

Unlimited local bandwidth

Real-World Comparison

Cloud API Call (Azure)

Request → Internet → Azure → Database
→ Internet → Response

Latency: 50-200ms
Cost: Data egress charges

On-Premise API Call ✅

Request → Local Server
→ Local Database → Response

Latency: 1-10ms
Cost: $0 (no egress)

🚨 Risk Mitigation

Hardware Failure

  • ✅ UPS protects against power issues
  • ✅ RAID for storage redundancy
  • ✅ 3-2-1 backup strategy
  • ✅ Dual servers prevent total downtime
  • ✅ 3-5 year warranties

Internet Outage

  • ✅ Backup ISP (Starlink)
  • ✅ Azure failover for cached content
  • ✅ VPN for remote access
  • ✅ Local operations continue working

Security

  • ✅ Firewall with IDS/IPS
  • ✅ VPN for remote access
  • ✅ Automated security patches
  • ✅ 24/7 uptime monitoring

Scalability

  • ✅ Add more RAM/storage
  • ✅ Add more servers
  • ✅ Cloud burst to Azure
  • ✅ Horizontal scaling ready

🎯 Final Recommendation

🏆 GO WITH OPTION 2: DUAL-SERVER SETUP

Total Investment
$14,435
(Enhanced Configuration)

Why This Configuration Wins:

✅ Best balance of cost, performance, and reliability

✅ Separation of dev/prod environments

✅ Dedicated AI/GPU resources

✅ Professional networking and storage

✅ Breaks even in 20 months

✅ Saves $15,000-25,000 over 5 years

✅ Full IP protection

✅ 10-100x faster local operations

Next Steps

  1. Approve budget: $14,435 for enhanced dual-server build
  2. Order hardware: 1-2 week delivery time for components
  3. Schedule setup: 2-4 weeks for full deployment
  4. Migrate from Azure: Phased migration with zero downtime
  5. Optimize Azure: Keep only CDN + DNS ($50-150/month)
Ready to proceed? Contact the team for detailed purchase links, assembly guides, and migration playbooks.

📚 Additional Resources

Questions? Review the complete hardware shopping list in the docs folder or contact the development team for guidance.