AI analyzes the implications of Dynatrace Cloud versus Dynatrace Managed (on-premises) deployments for ABC Company's artificial intelligence strategy. It examines how each model impacts the utilization of observability data for AI, considering factors like native AI capabilities (Davis), third-party AI integration, and the development of custom "agentic AI." The discussion highlights the total cost of ownership (TCO), comparing direct cloud consumption fees against the indirect infrastructure and operational burdens of on-premises solutions. Ultimately, the document weighs strategic considerations such as innovation velocity, data integration, and risk management, recommending the cloud model for its agility and reduced operational overhead, unless specific and compelling on-premises requirements exist.
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