Beyond the Demo: The Real Economics of Self-Hosted LLM Agents

Self-hosted LLM agent implementation appears straightforward in demonstrations but reveals complex operational challenges in production environments. This article introduces a practical decision framework—monthly workflow volume, cost per successful completion, and downside risk exposure—that helps organizations determine whether building custom infrastructure or purchasing managed solutions better aligns with their constraints. The framework is essential because most teams conflate technical feasibility with business appropriateness, leading either to over-engineered solutions or insufficient attention to reliability and compliance requirements.