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      Engineering documents, contracts, and reports

    • Every regulated industry we serve→
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Buyer's guide

On-premise document AI: what the words mean before you sign for them

Four terms get used interchangeably in this market — self-hosted, BYOC, hybrid and air-gapped — and they describe four materially different data paths. This guide defines each one precisely, gives you the due-diligence questions to put to any vendor, and shows how to verify the answers during a pilot rather than after one.

  • Vendor-neutral definitions
  • Due-diligence checklist
  • Pilot validation method
  • Ask us these questions too
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Compare deployment models
Network diagram of an air-gapped document AI deployment with no outbound path beyond the customer perimeter
0 bytes
Egress in a true air-gap
verifiable in your firewall logs
4 terms
Routinely used as synonyms
self-hosted, BYOC, hybrid, air-gapped
16
Due-diligence questions below
ask every vendor, including us
In writing
What to accept as proof
diagrams and manifests, not assurances

This page is deliberately vendor-neutral. The checklist and the validation method apply to DocxIntel exactly as they apply to anyone else, and the Proof of Value exists so that our answers can be tested in your environment rather than believed.

The drivers

Why organisations end up needing on-premise document AI

Almost nobody chooses to run infrastructure for the pleasure of it. Teams arrive at on-premise document processing because one of these six constraints made the alternative impossible.

Data-residency law

Sector regulation frequently requires that specified categories of data are stored and processed inside a national boundary. Once a document is transmitted for processing, it has been processed wherever the endpoint sits.

  • CBUAE outsourcing and residency rules
  • UAE PDPL
  • UAE Health ICT Law
  • GDPR transfer assessments

Sovereignty and supply-chain control

Government and defence buyers increasingly need to know that a capability keeps working regardless of a foreign vendor relationship, an export-control change or a service withdrawal.

  • Continuity independent of vendor status
  • No foreign control plane dependency
  • Artifacts held domestically

Legal privilege and confidentiality

Litigation files, investigation material and board papers carry confidentiality duties that make third-party transmission an issue of professional obligation, not just of preference.

  • Privileged material stays in-house
  • No third-party disclosure surface
  • Simpler conflict-of-interest position

Classified and isolated networks

Some networks have no internet path by design. Software either runs inside that boundary with everything it needs, or it does not run there at all. There is no partial answer.

  • No outbound route available
  • Offline update channel required
  • Full function without connectivity

A no-egress internal policy

Plenty of organisations have an internal rule that customer documents do not leave the network, independent of any regulator. Architecture has to satisfy the policy as written, not the policy as argued.

  • Policy predates the AI question
  • Exceptions are costly to obtain
  • Security review is far shorter

Cost at real volume

Per-page pricing is a rounding error at pilot scale and a permanent, growing line item at production scale — particularly for organisations whose archive keeps expanding.

  • Linear cost growth with volume
  • Reprocessing charged again in full
  • Budget scales with the archive
The vocabulary problem

Self-hosted, BYOC, hybrid and air-gapped are not synonyms

This is the single most useful distinction in the category, and it is the one most often blurred — sometimes deliberately, more often because the terms genuinely drifted. Read these four definitions before you read any vendor datasheet.

Definition 1

Self-hosted

You run the containers or virtual machines. That is the whole claim. It says nothing about whether the deployment needs outbound connectivity to function, who controls the images, or whether the model weights are readable artifacts on your disk. A genuinely self-hosted product can still call home for licence validation, telemetry, or a model download on first start.

  • Question to ask: what outbound connections does it make at runtime?
  • Question to ask: does it start successfully with no internet route?
  • Question to ask: who can push a new image into this deployment?
Definition 2

BYOC or VPC deployment

Vendor-controlled workloads run inside your cloud subscription. Your documents stay in your tenant, which is a real and often sufficient answer to a residency requirement. It is not an air-gap: there is normally a hosted control plane, cloud-provider dependency and a vendor upgrade path. It is also commonly gated behind the top commercial tier.

  • Question to ask: which plan is this available on, and at what price?
  • Question to ask: what does the control plane see, and where does it run?
  • Question to ask: can it operate if the vendor control plane is unreachable?
Definition 3

Hybrid

Part of the pipeline runs locally and part runs in the vendor cloud — often local pre-processing with cloud inference, or local inference with cloud orchestration and model serving. Hybrid can be an excellent engineering compromise. It is only a problem when it is described as on-premise, because at least one stage still transmits data.

  • Question to ask: exactly which stages run where?
  • Question to ask: what data crosses the boundary, in what form?
  • Question to ask: does derived text or embeddings leave, even if pages do not?
Definition 4

Truly air-gapped

The deployment functions with the outbound route removed. No licence check-in, no telemetry, no model fetch, no fallback call to a cloud endpoint when a local model is uncertain. Updates arrive as signed offline packages you import on your own schedule. This is a testable claim, which is what makes it worth insisting on.

  • Question to ask: can we run the pilot with the default route deleted?
  • Question to ask: how are updates delivered offline, and are they signed?
  • Question to ask: is there any fallback cloud call on low confidence?
Deployment archetypes

The four archetypes against the questions that matter

Use this to place any vendor proposal into the right column before you compare prices. Two products in different columns are not competing products, whatever the category label says.

The four archetypes against the questions that matter
CriterionMulti-tenant SaaSBYOC / VPCHybridTrue on-premise
Where the page is readVendor tenantYour cloud subscriptionSplit across bothYour hardware
Outbound connectivity requiredYes, for every pageYes, for the control planeYes, for one or more stagesNone
Who holds the model weightsVendorVendor, in your subscriptionSplitYou, on your storage
Satisfies a strict residency ruleOnly if the region is in scopeUsually yesDepends on which stage crossesYes
Deployable on an isolated networkNoNoNoYes
Vendor is a processor for your documentsYesUsually yesFor the cloud stagesNo — not in the data path
Typical pricing modelPer page or per creditEnterprise contractPer page for cloud stagesFixed licence
Cost of reprocessing an archiveCharged again in fullUsually charged againCharged for cloud stagesCompute you already own
How updates arriveAutomatically, on vendor scheduleVendor image pushMixedSigned offline packages, on your schedule
Operational burden on youEffectively noneCloud resources and costBoth sides of the boundaryHardware, capacity and upgrades
Time to first resultMinutesWeeksWeeksDays inside a pilot
Keeps running if the vendor relationship endsNoNot usuallyPartiallyYes, subject to licence terms

Where the page is read

Multi-tenant SaaS
Vendor tenant
BYOC / VPC
Your cloud subscription
Hybrid
Split across both
True on-premise
Your hardware

Outbound connectivity required

Multi-tenant SaaS
Yes, for every page
BYOC / VPC
Yes, for the control plane
Hybrid
Yes, for one or more stages
True on-premise
None

Who holds the model weights

Multi-tenant SaaS
Vendor
BYOC / VPC
Vendor, in your subscription
Hybrid
Split
True on-premise
You, on your storage

Satisfies a strict residency rule

Multi-tenant SaaS
Only if the region is in scope
BYOC / VPC
Usually yes
Hybrid
Depends on which stage crosses
True on-premise
Yes

Deployable on an isolated network

Multi-tenant SaaS
No
BYOC / VPC
No
Hybrid
No
True on-premise
Yes

Vendor is a processor for your documents

Multi-tenant SaaS
Yes
BYOC / VPC
Usually yes
Hybrid
For the cloud stages
True on-premise
No — not in the data path

Typical pricing model

Multi-tenant SaaS
Per page or per credit
BYOC / VPC
Enterprise contract
Hybrid
Per page for cloud stages
True on-premise
Fixed licence

Cost of reprocessing an archive

Multi-tenant SaaS
Charged again in full
BYOC / VPC
Usually charged again
Hybrid
Charged for cloud stages
True on-premise
Compute you already own

How updates arrive

Multi-tenant SaaS
Automatically, on vendor schedule
BYOC / VPC
Vendor image push
Hybrid
Mixed
True on-premise
Signed offline packages, on your schedule

Operational burden on you

Multi-tenant SaaS
Effectively none
BYOC / VPC
Cloud resources and cost
Hybrid
Both sides of the boundary
True on-premise
Hardware, capacity and upgrades

Time to first result

Multi-tenant SaaS
Minutes
BYOC / VPC
Weeks
Hybrid
Weeks
True on-premise
Days inside a pilot

Keeps running if the vendor relationship ends

Multi-tenant SaaS
No
BYOC / VPC
Not usually
Hybrid
Partially
True on-premise
Yes, subject to licence terms

Archetypes are generalised from publicly documented behaviour across the document AI market as of 2026. Individual vendors vary and change their offerings frequently — verify against current vendor documentation, and place a specific proposal in a column only after reading its data-flow diagram. The highlighted column describes how DocxIntel is built; it is not a claim that every on-premise product behaves this way.

See DocxIntel deployment models
Total cost

The costs of metered pricing that never appear on the invoice

Per-page pricing is transparent about the per-page price. The costs it creates elsewhere are real, recurring and usually absent from the business case that approved it.

  • Reprocessing becomes unaffordable, so you stop taking advantage of model improvements on historical documents
  • Teams sample rather than process everything, because full coverage costs more than partial coverage
  • Engineers spend effort on cost-control logic — mode selection, page filtering, caching — that produces no business value
  • Cheaper parse modes get chosen for cost reasons and re-run later at a higher tier when quality falls short
  • A vendor in the data path adds DPIA scope, sub-processor review and transfer assessment to every renewal
  • Cost grows with your archive rather than with the value you get from it, so the budget conversation repeats annually

None of these make a metered service the wrong choice. They just belong in the comparison alongside the per-page rate, which is where they are usually missing.

See the pricing rationale
Illustration representing growing document volume moving through a processing pipeline
Due diligence

Sixteen questions to put to any on-premise document AI vendor

Written to be pasted straight into an RFP. Every one has a verifiable answer, and a vendor who cannot answer in writing has told you something useful.

Data path and egress

1. Can we see a complete data-flow diagram?
Every stage, every store and every outbound connection, including licensing, telemetry and model distribution. Not a marketing architecture slide.
2. What happens with the outbound route removed?
Does the product start, process and complete normally, or does it degrade, queue or fail? Ask for this to be demonstrated, not described.
3. Is there any fallback to a cloud model?
Some products silently escalate low-confidence pages to a hosted model. Ask explicitly, because it will not appear in the summary datasheet.
4. Is any document, text or embedding cached by the vendor?
If yes: what exactly, for how long, in which jurisdiction, and can it be disabled without losing function?

Models and custody

5. Will you provide a full model manifest?
Named model, version, licence and purpose for every component: OCR, layout, classification, extraction and any language model.
6. Where do the weights physically live?
On storage we control, or pulled from a vendor registry at runtime? These have different answers in an audit.
7. Are the model licences valid for offline commercial use?
Some open-weight licences restrict commercial deployment or redistribution. Get the licence text, not the licence name.
8. Can our documents ever be used for training?
Ask for a contractual exclusion, not a policy statement. In a true on-premise deployment there is no mechanism for it, which should be evident in the diagram from question one.

Operations and continuity

9. How do updates reach an offline deployment?
Signed, versioned offline packages imported on your schedule, with a changelog and re-validation report, or an internet pull you cannot permit.
10. Can we roll back a model version?
Model changes shift extraction behaviour. You need the previous version retained and a documented rollback path.
11. What is the high-availability and disaster-recovery design?
Worker redundancy, queue durability, restore procedure and measured recovery objectives against your volume.
12. How is the deployment supported without remote access?
Log bundles you review and release, scheduled escorted sessions, or on-site attendance. Agree this before an incident, not during one.

Commercial and evaluation

13. On which commercial tier is on-premise available?
If it is enterprise-only or quote-only, the deployment you need is not the one described by the published pricing.
14. What is the all-in first-year cost?
Licence or subscription, setup and implementation fees, hardware, and the cost of the volume you will actually process.
15. Will you commit to a field-level accuracy threshold on our documents?
On your document set, measured field by field with an adjudicated ground truth, with the remediation path written into the contract.
16. What keeps running if the contract ends?
Extracted data, deployment images, model artifacts and the licence position on each. Establish this before signature.

Ask DocxIntel all sixteen. The Proof of Value is structured so that the answers can be verified in your own environment, with your own logs and your own documents, rather than accepted on trust.

Validation

How to prove the claims during a pilot

A pilot that only measures accuracy has tested half the product. These five exercises test the architecture, and they cost almost nothing to run alongside the accuracy work.

  1. 1
    Exercise 1

    Install into an isolated segment and delete the route

    Give the deployment no default route and no DNS forwarder. Then run a representative batch end to end. Anything that needs the internet will surface immediately, and it will surface in your logs rather than in a conversation.

  2. 2
    Exercise 2

    Read your own egress, DNS and proxy logs

    Do not rely on the vendor to report its own connections. Capture at your firewall and resolver for the whole pilot window, including start-up, an update import and an idle overnight period when telemetry usually fires.

  3. 3
    Exercise 3

    Score field-level accuracy on your own golden set

    Three hundred to five hundred real documents in your actual mix — phone photographs, handwritten Arabic, stamped pages, multi-generation faxes, packets that need splitting. Adjudicate the ground truth once and score each field independently.

  4. 4
    Exercise 4

    Import an offline update during the pilot

    Do not defer this to production. Verify the package signature, import it on the isolated segment, re-run the golden set and compare field-level output before and after. This is also how you find out whether rollback works.

  5. 5
    Exercise 5

    Rehearse the exit before you sign the entry

    Export the extracted data in a format you can use elsewhere, confirm which artifacts remain yours if the contract ends, and record the answers in the contract rather than in the pilot report.

On-premise document AI — the questions worth asking

Vendor-neutral answers to the questions that come up in every air-gapped evaluation.

Strictly, it means the software and the models run on infrastructure your organisation controls, and no document or derived text is transmitted to a third party in order to be processed. The word is used far more loosely than that in the market — it is regularly applied to vendor-managed containers in your cloud account, and sometimes to a cloud service with a local upload agent. Ask for the data-flow diagram, not the label.

No, and conflating them is the most common mistake in this category. Self-hosted usually means you run the containers; it says nothing about whether they need outbound connectivity for licensing, telemetry, model fetches or a hosted control plane. Air-gapped means the deployment functions with the outbound route physically removed. A product can be genuinely self-hosted and still fail an air-gap test.

Deploy into an isolated network segment during the pilot, remove the default route, and process a representative batch. Then read your own egress, DNS and proxy logs rather than the vendor datasheet. Licensing check-ins, crash reporting, usage counters and model downloads all appear in those logs within minutes if they exist. Repeat the test after an update, because behaviour can change between releases.

It depends on page volume, turnaround time and how much of the workload is OCR versus language-model inference. A single GPU-equipped server handles a substantial daily volume for most organisations, CPU-only profiles exist for lower volumes and edge sites, and throughput scales by adding workers. Insist on a sizing exercise against your real document mix rather than accepting a generic reference specification.

No. Below roughly 50,000 pages a month, metered services are usually cheaper in cash terms and dramatically cheaper in effort, because you own no hardware and no operations. The economics invert as volume grows and as reprocessing becomes something you want to do routinely. Do the arithmetic at your real annual volume rather than assuming either direction.

Four things: a data-flow diagram showing every outbound connection, a model manifest naming each model, version and licence, a written statement of which commercial tier the on-premise deployment sits on, and a continuity clause describing what keeps running if the contract ends or the vendor is acquired. If any of those cannot be put in writing, that is your answer.

Keep reading

Compare all approaches→Metered cloud API, BYOC on an enterprise tier, and true on-premise, side by side.Deployment models→Air-gapped, private cloud, managed single-tenant and evaluation sandbox, in detail.Security architecture→How the architecture supports your own certification and your own control framework.DocxIntel vs LlamaParse→Credit-based parsing and enterprise BYOC self-hosting, compared fairly.DocxIntel vs Docsumo→Per-page IDP pricing against a fixed licence, including where Docsumo is the better fit.Proof of Value→A paid 30-45 day pilot in your environment, with the accuracy threshold agreed in writing.

Run the checklist against us first.

Sixteen questions, answered in writing, then verified in your own environment during a fixed-fee Proof of Value. If the answers do not hold up, you should not buy — from us or from anyone else.

Talk to an engineer
How the Proof of Value works
  • No per-page metering
  • Runs in your environment
  • Written accuracy threshold
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Document intelligence that never leaves your building. Analyse, identify, classify, map, modify and ask — inside your own infrastructure.

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