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Cost & Pricing

Annual TCO – Dedicated vs Cloud GPU

Hourly cloud GPU pricing looks reasonable. At 365x24 utilisation the total annual cost is eye-watering. Dedicated is almost always cheaper.

Cloud GPU providers quote hourly prices. For always-on production serving, that math gets ugly fast. A dedicated GPU on our UK hosting has fixed monthly billing and typically runs 60-80% cheaper at 24/7 utilisation over a year.

Contents

Cloud Hourly

Approximate 2026 cloud prices for an A10G or L4 class GPU (not 5090 equivalents – hyperscalers rarely offer those):

  • On-demand: $1.00-$1.50/hour
  • 1-year reserved: $0.60-$0.90/hour
  • Spot (interruptible): $0.30-$0.60/hour

24/7 on-demand: ~$730-$1,100/month. Annual: ~$8,700-$13,200.

Dedicated

A UK dedicated GPU from GigaGPU at a comparable tier: roughly £300-£700/month depending on card. Annual: £3,600-£8,400.

That’s before factoring that a dedicated 5090 is a different class of card – roughly twice the performance of an A10G – so the effective per-token cost advantage widens further.

Hidden Cloud Costs

Cloud bills accumulate beyond compute:

  • Data egress fees (~$0.09/GB above free tier)
  • Storage for model weights (persistent storage is extra)
  • VPC / network infrastructure charges
  • Monitoring and logs (CloudWatch, Stackdriver)
  • Spot preemption recovery overhead (engineer time)

Dedicated hosting bundles bandwidth, storage, and typically has no per-GB fees.

Annual TCO

Line ItemCloud (on-demand)Dedicated
Compute£10,000£6,000
Egress£1,500£0
Storage£500£0
Ops overhead£2,000£500
Total£14,000£6,500

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