Where Should Your ERP Run? Public Cloud vs Hybrid Infrastructure for AI

Where should your ERP run in the age of AI and data sovereignty? Learn more here: https://eqix.it/4vfrPWz AI GPU demand, regulatory requirements, and the growing cost of cloud data egress are challenging traditional ERP-cloud strategies. Instead of running every ERP environment in public cloud, enterprises are weighing on-prem vs colocation vs hyperscale and adopting a hybrid infrastructure that aligns each environment with its specific performance, compliance, and cost requirements. In this session, Glenn Dekhayser, Global Principal Technologist at Equinix, explains how to keep sandbox and development environments in public cloud while running test, QA, and production—where real business data lives—on sovereign, interconnected colocation infrastructure. Learn how this colocation vs cloud decision supports compliance, improves access to AI GPUs, and creates predictable connectivity costs. What you'll learn: Why ERP applications moved to public cloud, and why that data center strategy math is changing How AI GPU demand and data sovereignty are driving cloud repatriation Why production, QA and test carry data residency and compliance requirements How to split public cloud dev from sovereign production using enterprise colocation How this hybrid infrastructure pattern maps to SAP infrastructure placement, SAP RISE, Oracle hybrid deployment, and ERP migration How private interconnection delivers deterministic, flat-cost performance instead of per-gigabyte egress Built for infrastructure and networking teams evaluating cloud governance, colocation vs cloud cost, sovereign cloud models and hybrid deployment. If your teams are weighing public cloud against colocation for critical ERP workloads, this walkthrough shows a repeatable pattern. Who it's for: Infrastructure leaders, network architects, cloud teams and technical evaluators responsible for ERP, enterprise applications, sovereignty and AI-ready infrastructure. FAQs: Q: On-prem vs colocation vs hyperscale — where should ERP actually run? A: It depends on the environment. Low-risk dev and sandbox can stay in public cloud, while production, QA and test—which carry regulated data—belong on controlled infrastructure. Enterprises increasingly place those in colocation at Equinix, connecting privately to clouds and GPU providers. This is the core colocation vs cloud enterprise decision behind most SAP and Oracle modernization projects. Q: Where should SAP ERP run — SAP RISE, public cloud, or colocation? A: SAP RISE moves SAP into a managed cloud, but production and QA still carry data residency and egress exposure. Many enterprises keep dev in public cloud or RISE while running production cloud ERP in sovereign colocation, connected privately to clouds and GPUs — the same colocation vs cloud pattern, applied to SAP. Q: What is ERP cloud repatriation, and why now? A: Cloud repatriation moves workloads out of public cloud into more controlled environments. For ERP, it's driven by AI GPU demand, unpredictable egress costs and data sovereignty requirements so production ERP lands in colocation where teams retain control while connecting privately to clouds and GPUs. Q: How do AI and data sovereignty change ERP architecture? A: AI raises the need for GPU access and efficient data movement; sovereignty requires control over where regulated data resides. Together they push teams to separate low-risk dev from production, QA and test, using in-country, customer-controlled infrastructure and private connectivity. Q: What is sovereign cloud architecture for enterprise applications? A: It keeps sensitive data under the organization's control—meeting data residency and governance requirements—while staying connected to clouds and partners. At Equinix, enterprises run their own infrastructure in colocation and use Equinix Fabric to control how data moves. Q: Why use private interconnection instead of the public internet for ERP? A: Public cloud egress is charged by the gigabyte, making cost hard to predict. Private interconnection through Equinix Fabric delivers deterministic, flat-cost connectivity to users, partners and GPU providers without sending regulated traffic over the public internet. Chapters: 0:00 — Why enterprises moved ERP to public cloud 1:16 — How AI and sovereignty changed the equation 3:09 — Which ERP environments actually need sovereignty 6:27 — Splitting the architecture with Equinix Fabric 7:12 — Private access to GPUs and neoclouds 8:36 — Balancing AI demand, sovereignty and flexibility About Equinix: Equinix, Inc. (Nasdaq: EQIX) shortens the path to boundless connectivity anywhere in the world. Its digital infrastructure, data center footprint and interconnected ecosystems empower innovations that enhance our work, life and planet. Equinix connects economies, countries, organizations and communities, delivering seamless digital experiences and cutting-edge AI—quickly, efficiently and everywhere. 6294