Azure-Only RAG AI Delivers Latency Wins and Lower TCO, PT Study

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A new Principled Technologies (PT) study circulating as a press release this week argues that deploying a retrieval‑augmented generation (RAG) AI application entirely on Microsoft Azure — instead of splitting model hosting and search/compute across providers — can materially improve latency, simplify governance, and reduce multi‑year costs for many common enterprise GenAI workloads. The study’s headline numbers are eye‑catching: PT reports roughly a 59.7% reduction in end‑to‑end execution time and up to an 88.8% reduction in search‑layer latency when the full stack runs on Azure (Azure OpenAI + Azure AI Search + Azure compute) versus a mixed deployment that used Azure OpenAI models but hosted other components on AWS (Amazon Kendra + AWS compute). These results add fresh, empirical ammunition to an intensifying debate inside enterprise IT: when does single‑cloud consolidation for AI make sense — and when does multi‑cloud remain the safer, more strategic choice?

RAG pipeline links cohesive Azure cloud stack to mixed cloud setup for single-cloud AI.Background / Overview​

Principled Technologies is a long‑standing independent testing and benchmarking firm that runs hands‑on comparisons of cloud and on‑prem platforms. In the PT scenario, the team built a simple RAG pipeline and executed it in two topologies:
  • A mixed, multi‑cloud deployment that used Azure OpenAI (GPT‑4o mini) for model inference but hosted search and other components on AWS (using Amazon Kendra for retrieval).
  • A single‑cloud deployment that ran the whole stack on Microsoft AzureAzure OpenAI, Azure AI Search, and Azure compute/storage.
PT measured key operational metrics (end‑to‑end latency, search query latency, token throughput) and modeled a three‑year Total Cost of Ownership (TCO) using defined utilization and discount assumptions. The press summary concludes that, for the tested configuration, the Azure‑only configuration produced both faster responses and better cost predictability — outcomes PT ties to collocation, integrated tooling, and elimination of cross‑provider data egress and operational complexity.
The proof‑point is straightforward and, at a conceptual level, uncontroversial: placing tightly coupled components — vector retrieval, model inference, and GPUs/VMs — within the same cloud region and vendor often reduces network hops, avoids egress charges, and simplifies authentication and policy management. The crucial questions for practitioners are: how broadly do PT’s numbers generalize, what assumptions underlie the TCO model, and what architectural or business trade‑offs should teams weigh before moving a fleet of AI workloads to a single vendor?

What PT tested — a closer look at the experiment​

The architecture under test​

PT’s experiment used a canonical RAG flow: ingest documents into a managed search/index, embed and store vectors, query the index for relevant passages, then call a cloud LLM to synthesize answers. Key tech elements in the two deployments:
  • Single‑cloud (Azure):
  • Azure OpenAI models (GPT‑4o mini).
  • Azure AI Search as the retrieval service.
  • Azure GPU‑backed VMs and Azure storage for data.
  • Mixed deployment (Azure + AWS):
  • Azure OpenAI for the model calls.
  • Amazon Kendra for retrieval and indexing.
  • AWS compute/storage for hosting components other than the model.
Both tests used roughly equivalent service tiers and model choices (the study references GPT‑4o mini for inference). Measurements included the user request → model response latency (end‑to‑end), the time spent at the search/retrieval layer, and tokens produced per second.

Headline measurements​

  • ~59.7% reduction in end‑to‑end execution time for the Azure‑only deployment in PT’s tests.
  • Up to 88.8% faster search‑layer performance for Azure AI Search versus Amazon Kendra in the tested configuration.
  • PT also reported a more predictable TCO when the stack was consolidated into Azure, driven by consolidated billing and the ability to leverage committed discounts for sustained GPU usage.
These are PT’s reported outcomes for the specific RAG workload, service SKUs, regions, and utilization assumptions they selected.

Technical validation — do the platform claims hold up?​

To evaluate PT’s conclusions, it’s necessary to separate technical mechanics that are well understood from the precise numeric deltas that are configuration‑specific.

Why collocation often helps​

  • Data gravity and reduced network hops: When retrieval storage, vector databases, and model inference live in the same cloud region, there are fewer network transitions, less cross‑cloud routing, and lower latency windows for RPCs and HTTP calls. This is a general networking reality, not specific to one vendor.
  • Egress and billing effects: Cross‑cloud traffic commonly incurs egress charges and may add measurable latency, especially for large payloads or synchronous flows (for example, if a retrieval returns long context and the model call is not local).
  • Integrated service optimizations: Clouds that integrate model routing, search, and identity in a single control plane can streamline authentication, logging, policy enforcement, and observability — reducing operational overhead and potential for misconfiguration.
These mechanics are corroborated by platform documentation and vendor materials: Azure publishes purpose‑built AI infrastructure, integrated model catalogs (Azure AI Foundry), and dedicated, low‑latency GPU families that target inference workloads. AWS documents the design and capabilities of Amazon Kendra as an enterprise semantic search service and provides guidance on capacity planning and query scaling. Both vendor platforms are entirely capable; the advantage PT measured is largely about where components run and how they interconnect.

On reported performance deltas: configuration matters​

PT’s percent reductions are plausible in a real test where the mixed configuration introduced extra network hops, cross‑cloud serialization, and differing service latencies. But the magnitude of the gain — ~60% end‑to‑end and ~89% search layer — is sensitive to many variables:
  • Region pairings: If the Azure OpenAI models and Kendra instances are in different physical regions, cross‑region latency could dominate. Conversely, if both clouds had service endpoints in the same metro region and low‑latency interconnects were used, deltas may shrink.
  • VM and GPU SKUs: Different VM families and GPU bins deliver dramatically different token‑per‑second performance; mixing modern Azure GPU SKUs versus older AWS instances (or vice versa) changes results.
  • Index size and query complexity: Retrieval latency scales with index size, index type, and scoring complexity. Small synthetic corpora will show different deltas than real enterprise document sets.
  • Concurrency and throttling: Throughput under load depends on configured capacity units, autoscaling behavior, and rate limits at provider APIs.
  • Commercial discounts and sustained use commitments: TCO calculations depend heavily on negotiated rates, committed use discounts, and actual utilization curves.
Bottom line: the technical rationale behind PT’s result is sound; the numeric outcomes are test‑envelope specific and must be revalidated for any real production workload.

Cost and TCO: predictable savings or modeling artifacts?​

PT models a three‑year TCO and argues that single‑cloud consolidation yields more predictable costs and, under PT’s utilization assumptions, a lower TCO. That can be true — but only when the following conditions are present:
  • Sustained GPU usage that justifies committed‑use discounts (reservations or savings plans).
  • Stable throughput expectations that match reserved capacity; otherwise, pay‑as‑you‑go spikes can negate savings.
  • Minimized cross‑cloud egress and operational overhead (fewer subscriptions, unified observability, fewer engineers to manage cloud connectors).
However, TCO is notoriously sensitive to assumptions. Small changes to concurrency profiles, egress volumes, or discount negotiations can flip outcomes. Independent analyses and practitioner guidance recommend reconstructing any third‑party TCO model against internal telemetry and negotiated pricing before making binding procurement choices.

Governance, compliance, and operational simplicity​

PT emphasizes governance benefits of a single control plane: centralized identity, unified audit trails, and consolidated policy enforcement. Those benefits are real:
  • Azure’s integrated identity and policy tooling (Azure AD, role‑based access control, policy as code) can reduce cross‑cloud IAM friction.
  • A single vendor reduces the number of compliance attestations to manage and makes automated policy enforcement simpler to apply enterprise‑wide.
  • Observability and incident response are simpler when telemetry flows into a single cloud monitoring stack.
But single‑cloud consolidation concentrates responsibility and risk. Organizations must balance simplified governance against vendor dependency, and they should formalize exit and migration runbooks as an integral part of any consolidation decision.

Risks and caveats — what PT’s press summary underplays​

  • Vendor lock‑in risk: Centralizing core AI workloads with one cloud increases the friction and cost to move later. Preserve portability for critical workloads or maintain export/runbooks.
  • Resilience and business continuity: Multi‑cloud architectures are sometimes chosen to increase resilience; single‑cloud consolidations should be paired with geo‑redundancy and robust DR planning.
  • Negotiation and pricing sensitivity: TCO advantages often presuppose favorable discounts. Organizations without leverage or sustained usage patterns may see smaller or no savings.
  • Feature tradeoffs: Amazon Kendra and Azure AI Search have different feature sets and ingestion/connectors; Kendra offers rich built‑in connectors and certain enterprise search capabilities that may be required for some use cases.
  • Security assumptions: Centralizing can simplify some controls but magnifies impact of a single misconfiguration. Strong identity‑first design and least privilege controls remain essential.
  • Workload diversity: Some workloads (specialty ML tools, data sovereignty, partner ecosystems) may still be best placed outside a single cloud.
PT itself is careful to couch numerical claims as test‑specific; engineering teams should treat the report as hypothesis‑forming rather than definitive procurement guidance.

When single‑cloud AI on Azure makes the most sense​

Consolidating AI workloads onto Azure is most likely to deliver the benefits PT describes when several conditions line up:
  • The organization already has a large Microsoft footprint (Office 365, Azure AD, Microsoft 365, Dynamics) and strong commercial incentives to deepen Azure usage.
  • Workloads are latency‑sensitive and the RAG flow is chatty — frequent retrievals and synchronous model calls amplify cross‑cloud penalties.
  • GPU usage is sustained and predictable, enabling committed discounts and reservations to lower unit costs.
  • Data residency and compliance profiles allow centralization within Azure regions.
  • The application relies heavily on features or integrations that are more mature or performant in the Azure stack (e.g., data lake integration, certain Azure cognitive services).
In those scenarios, PT’s recommendation — pilot an all‑Azure topology, instrument, and measure — is pragmatic and aligns with sound engineering practice.

When to preserve a multi‑cloud strategy​

Multi‑cloud remains the sensible choice when:
  • Regulatory or sovereignty requirements mandate using specific clouds or on‑prem locations.
  • Organizations must avoid increased vendor dependency for strategic or procurement reasons.
  • Specialized services or tools exist only (or better) on another provider and migration costs outweigh the performance benefits of collocation.
  • Usage is highly spiky and unpredictable, making reserved discounts less effective.
  • Teams prioritize global resilience via provider diversity.

A pragmatic validation checklist for IT leaders​

Before you adopt PT’s Azure‑only recommendation wholesale, run a short, repeatable validation program. Use this checklist:
  • Instrument and baseline
  • Capture current end‑to‑end latency, retrieval latency, tokens/sec, egress volumes, and concurrency for representative workloads.
  • Recreate PT’s topology
  • Build a minimal RAG pilot that mirrors your production dataset, connectors, and SLAs, then deploy it in both single‑cloud and mixed configurations.
  • Measure under realistic load
  • Run tests across multiple time windows, with concurrency and query mix that reflect real traffic.
  • Recompute TCO with your negotiated pricing
  • Replace public list prices with your organization’s discounts, reserved pricing, and committed usage plans. Run sensitivity analysis.
  • Assess governance and risk
  • Map compliance requirements, exit routes, and disaster recovery for a single‑cloud plan. Create migration/export runbooks.
  • Evaluate functional gaps
  • Confirm search features, connectors, analytics, and relevancy tuning available in the chosen cloud meet business needs.
  • Reassess every 6–12 months
  • Cloud features, model economics, and regional availability evolve quickly — make the decision periodic, not permanent.

Practical engineering recommendations​

  • Use asynchronous or batched retrieval where possible to reduce the impact of transient latency spikes.
  • Cache high‑value embeddings or partial results when the freshness window allows, reducing repeated cross‑service calls.
  • Apply policy‑as‑code and automated compliance checks from day one if consolidating to reduce misconfiguration risk.
  • Maintain data export utilities and automated backups to avoid operational lock‑in.
  • Test failover scenarios: simulate losing the primary cloud region or service and measure recovery time objectives (RTOs) and recovery point objectives (RPOs).

Strengths and limitations of PT’s study​

Strengths:
  • PT performed reproducible hands‑on tests using a real RAG architecture, not just synthetic microbenchmarks.
  • The study highlights real operational levers: collocation, egress reduction, and simplified governance.
  • It provides a concise, actionable hypothesis for teams to pilot.
Limitations:
  • Results are tightly coupled to test configuration, service SKUs, region choices, and utilization assumptions.
  • Press materials summarize findings without fully exposing the raw test corpus, code, and exact provisioning details necessary for absolute replication.
  • Commercial and contractual differences (customer discounts, reserved instances, marketplace pricing) can materially alter TCO outcomes for other organizations.
Because PT’s numerical claims are contingent, treat the study as a launching point for localized testing rather than a plug‑and‑play procurement justification.

Conclusion​

The PT study adds a practical, empirically grounded voice to an important enterprise architecture debate. The technical logic — collocating retrieval, models, and compute to reduce latency and operational complexity — is sound and aligns with platform documentation and practitioner experience. For organizations that already live heavily in the Microsoft ecosystem, run latency‑sensitive RAG workloads, and can commit to sustained GPU usage, the Azure‑only approach described by PT can be a sensible and defensible strategy.
But the decision maps to business context and trade‑offs: negotiated pricing, regulatory constraints, functional search features, and resilience goals can all favor a mixed or multi‑cloud approach. The prudent course for IT leaders is clear: pilot the topology that PT highlights, instrument everything, rebuild the TCO with internal pricing and utilization, and bake migration/exit plans into any long‑term strategy. That disciplined approach preserves the potential performance and cost benefits PT observed while limiting the operational and strategic risks that come with deeper platform consolidation.

Source: Louisiana First News PT study shows that using a single-cloud approach for AI on Microsoft Azure can deliver benefits
 

A futuristic data center with glowing blue server towers and red network targets.
Principled Technologies’ new hands‑on benchmark argues that running an end‑to‑end Retrieval‑Augmented Generation (RAG) application entirely on Microsoft Azure — rather than splitting model hosting, retrieval, and compute across providers — can deliver measurable gains in latency, simplify governance, and produce more predictable multi‑year costs for many enterprise AI workloads.

Background / Overview​

Principled Technologies (PT), a commercial third‑party testing lab, built a canonical RAG pipeline twice: once as an Azure‑only deployment (Azure OpenAI + Azure AI Search + Azure compute/storage) and once as a mixed deployment that used Azure OpenAI for the LLM but relied on AWS services (Amazon Kendra + AWS compute) for retrieval and infrastructure. PT measured end‑to‑end latency, search latency, token throughput, and translated those measurements into a three‑year Total Cost of Ownership (TCO) model. The press materials report headline improvements in the Azure‑only topology: roughly a 59.7% reduction in end‑to‑end execution time and up to an 88.8% reduction in search‑layer latency versus the mixed deployment in their test envelope.
Those figures made the rounds quickly through PR syndication networks; they are notable because they put empirical weight behind a common architectural intuition: collocating tightly coupled components (vector retrieval, model inference, and GPUs/VMs) inside the same cloud region and vendor often reduces network hops, avoids egress charges, and simplifies identity, logging, and policy management.

What PT actually tested​

Architecture under test​

PT implemented a standard RAG flow:
  • Ingest documents and chunk content.
  • Create embeddings and populate a retrieval index/vector store.
  • Use the retrieval layer to find passages relevant to a query.
  • Call a hosted LLM to synthesize an answer from retrieved context.
Two topologies were compared:
  • Single‑cloud (Azure): Azure OpenAI (model: GPT‑4o mini), Azure AI Search for retrieval/indexing, Azure GPU‑backed VMs and Blob/managed storage for data.
  • Mixed (Azure + AWS): Azure OpenAI for model inference, Amazon Kendra for retrieval and indexing, and compute/storage hosted on AWS.

Metrics collected​

PT recorded:
  • End‑to‑end latency (client request → final model response),
  • Search/retrieval latency (time spent at the retrieval layer),
  • Token throughput (tokens produced per second),
  • And then modeled a three‑year TCO based on utilization and discount assumptions.

Headline results (PT’s reported numbers)​

  • ~59.7% faster end‑to‑end execution for the all‑Azure configuration compared with the mixed deployment in the tested scenario.
  • Up to 88.8% lower search‑layer latency when using Azure AI Search versus Amazon Kendra in PT’s configuration.
  • Modeled three‑year TCO advantages tied to consolidated spend, committed discounts, and lower operational complexity in the Azure baseline.
Important: those numerical deltas come from PT’s controlled test environment and are explicitly configuration‑specific. The study makes clear that the results hinge on choices such as VM/GPU SKU, region topology, dataset sizes, concurrency, and negotiated commercial terms. Treat the percentages as test outcomes, not universal guarantees.

Technical verification — why the results are plausible​

PT’s directional claims rest on three well‑understood technical pillars.

1) Data gravity and collocation reduce latency and egress​

When large datasets, embeddings, and an LLM are located inside the same cloud region and provider, network round trips and cross‑provider egress are minimized. That lowers per‑request latency and eliminates transfer charges that can add up over many queries. This is a platform‑agnostic mechanical effect — collocation reduces hops and egress friction. PT’s measurements are consistent with that expectation.

2) Modern Azure GPU VM families support high throughput​

Azure publishes specialized GPU‑accelerated VM families for AI workloads (for example, NC H100 v5 / NCads H100 v5 SKUs and A100 variants). These SKUs provide high host‑to‑GPU interconnect bandwidth, large HBM capacities, and configurations optimized for batch inference and real‑time inference workloads. Using these SKUs in the same cloud region can materially improve model throughput and reduce CPU‑GPU transfer latency, which plausibly contributes to PT’s throughput and latency gains.

3) Integrated managed services reduce glue code and round‑trip overhead​

Azure AI Search supports integrated vector indexing, integrated vectorization (indexer pipelines that call embedding models), and hybrid search that runs vector + keyword queries in parallel. These integrated capabilities enable a tight retrieval pipeline without building and managing cross‑cloud connectors or bespoke vector stores. Amazon Kendra provides a different feature set optimized for enterprise connectors and ACL filtering, but integration patterns differ and can introduce additional network and orchestration overhead depending on topology. Microsoft documentation shows Azure AI Search’s vector features and integrated vectorization are designed for this exact workload class.

Cross‑checking PT’s key claims​

  • PT’s study and its summary press release contain the specific percentages (59.7% and 88.8%) and the description of the experimental topology. These are PT’s reported outcomes.
  • Microsoft’s public documentation verifies the underlying platform capabilities PT relied on — Azure OpenAI (GPT‑4o mini), Azure AI Search with vector and hybrid search, and modern GPU VM SKUs (H100/A100 families) — all of which plausibly enable the performance outcomes PT measured.
  • Amazon’s Kendra documentation confirms it’s a purpose‑built enterprise retriever with optimized passage selection, ACL filtering, and features targeted at securing and tuning RAG pipelines — but the service design and available managed connectors differ materially from Azure AI Search’s integrated vectorization story. That difference can influence measured latency depending on implementation and region placement.
Taken together, these cross‑checks corroborate the direction of PT’s conclusions: collocating retrieval, vector storage, and inference on a single cloud stack can improve latency and simplify operations. The magnitude of the numeric deltas, however, remains tied to PT’s specific test envelope.

Strengths in PT’s approach (what it gets right)​

  • Practical, workload‑level testing: PT ran an end‑to‑end RAG pipeline, not just isolated microbenchmarks. That delivers meaningful system‑level data about how retrieval and inference interact in the wild.
  • Transparent caveats: PT repeatedly frames its numerical claims as dependent on SKUs, regions, and utilization assumptions, and recommends organizations re‑run the tests with their own inputs. That is the responsible posture for vendor‑adjacent benchmarks.
  • Actionable guidance: The study yields a clear validation playbook: inventory workloads by data gravity, pilot a constrained RAG workload on Azure, and rebuild TCO models with real utilization data. Those are pragmatic next steps for CIOs and SREs.

Risks, limits, and what PT’s study does not prove​

1) Configuration sensitivity and generalizability​

The reported 59.7% and 88.8% improvements are test‑envelope outcomes. Small differences in GPU family, VM sizing, region latency, concurrent load, or embedding pipeline design can swing latency and TCO results dramatically. PT’s numbers are not a universal law; they are a hypothesis to validate.

2) Vendor lock‑in and exit costs​

Consolidation on a single provider can yield predictable billing and operational simplicity, but it increases migration and exit friction. Procurement and engineering teams must model migration costs, data export times, and contractual exit terms. These one‑time and recurring governance costs can offset some projected TCO benefits if not included.

3) Resilience and strategic heterogeneity​

Single‑cloud strategies reduce operational surface area but create resilience dependencies. Multi‑cloud architectures offer provider diversity that can be critical for high‑availability SLAs or regulatory requirements. The appropriate choice is rarely binary; it is workload‑by‑workload.

4) Feature gaps and best‑of‑breed tradeoffs​

Some organizations rely on best‑of‑breed capabilities available only on one cloud (specialized ML infra, proprietary data connectors, or unique security tooling). Consolidating on Azure may require feature parity checks for niche capabilities offered by other providers. PT’s study focuses on a common RAG pattern; it does not compare every possible service or advanced workload.

5) Unverifiable or anecdotal claims​

Where PT or the press release cites customer anecdotes or scenario extrapolations, treat those as illustrative rather than independently audited facts. Flag any single anecdote as unverified until corroborated by enterprise customers or reproducible third‑party tests.

Cost and TCO: what to watch for when you model​

PT’s three‑year TCO modeling shows consolidated spend unlocking committed‑use discounts and more predictable billing. That can be real — but only when modeled with careful assumptions:
  • Utilization: Sustained GPU hours vs bursty usage change the economics dramatically.
  • Discounts: Reserved instances, committed use discounts, and enterprise agreements materially reduce hourly costs and can flip the TCO calculus.
  • Egress: Cross‑provider egress and frequent retrievals from a remote provider increase per‑request costs.
  • Migration: One‑time migration labor and tooling costs should be included in any multi‑year model.
Actionable modeling advice:
  1. Rebuild PT’s spreadsheet with your actual GPU hours, egress volumes, and storage I/O.
  2. Run sensitivity scenarios for utilization ±20–50% and egress spikes.
  3. Include conservative assumptions for migration/exit costs and for feature development required to replicate multi‑cloud behaviors on a single provider.

A practical playbook — pilot, measure, decide​

For IT leaders considering PT’s recommendation, follow a staged, low‑risk approach:
  • Inventory and classify AI workloads by:
    • Data gravity (size and where it resides),
    • Latency sensitivity,
    • Compliance and sovereignty constrains,
    • Dependency on niche services.
  • Pick a single high‑value, latency‑sensitive RAG workload for a short Azure pilot.
  • Replicate PT’s topology as closely as possible for apples‑to‑apples comparison:
    • Use a comparable Azure GPU SKU,
    • Use Azure AI Search with integrated vectorization or equivalent,
    • Use Azure OpenAI with the same model family (for example, GPT‑4o mini or the current recommended model for your needs).
  • Instrument rigorously:
    • End‑to‑end latency (p95, p99),
    • Search‑layer latency,
    • Tokens/sec and throughput under realistic concurrency,
    • Operational time spent on integration and incident remediation.
  • Rebuild TCO using real telemetry and negotiated prices.
  • Harden governance and publish migration/exit runbooks from day one.
These steps follow the balanced recommendations PT encourages: use their study as a replicable blueprint, not a procurement mandate.

Where single‑cloud Azure is most likely to win (practical decision rules)​

  • High data gravity: Large corpora stored in Azure storage, frequent retrievals, and sizeable vector indexes.
  • Latency‑sensitive inference: Customer‑facing chatbots or interactive agents where sub‑second improvements are material.
  • Large sustained GPU demand: Long‑running inference clusters or scheduled training where reserved capacity pays off.
  • Unified governance needs: Enterprises with strong investments in Microsoft identity and compliance tooling (Microsoft Entra, Purview, Defender) that benefit from a single control plane.

Where multi‑cloud or hybrid still makes sense​

  • Legal/sovereignty constraints: Data residency laws or sovereign clouds block full public cloud consolidation.
  • Burst or highly variable GPU usage: Pay‑as‑you‑go elasticity across clouds can be cheaper than long‑term reservations.
  • Need for provider diversity: If resilience and avoidance of single‑vendor exposure is strategic, maintain multi‑cloud.
  • Best‑of‑breed dependencies: If a particular service (e.g., a specialized retriever, proprietary connector, or security function) is essential and unavailable on Azure at acceptable cost or performance.

Final assessment — balanced endorsement with guardrails​

Principled Technologies’ study adds a useful, practical data point to a long‑running architectural debate. It demonstrates, with hands‑on measurements, that collocating retrieval, vector indexes, and inference on Azure can produce meaningful latency and operational benefits for the tested RAG scenario. The reported 59.7% end‑to‑end improvement and 88.8% search‑layer reduction are compelling within PT’s configuration, but they are not universal laws — they must be validated against each organization’s real workloads and negotiated pricing.
Cross‑checks against Microsoft documentation confirm the technical building blocks PT used — Azure AI Search with integrated vectorization and modern NC H100 / A100 GPU VM families — and Amazon’s documentation clarifies how Kendra’s enterprise retriever design differs. These sources support the direction (single‑cloud collocation reduces friction) and explain the mechanisms behind it.
Recommended approach for decision‑makers:
  • Treat PT’s numbers as a hypothesis generator: run targeted pilots, instrument end‑to‑end behavior, and rebuild TCO models with your actual telemetry.
  • Preserve exit and migration playbooks from day one to mitigate lock‑in risk.
  • Make workload‑level decisions: collocate where data gravity and latency demand it; preserve hybrid/multi‑cloud for portability, resilience, or niche capability needs.
The PT study is useful because it converts an architectural intuition into reproducible experiments and shows how those experiments feed into procurement and engineering choices. The prudent path is neither blanket consolidation nor reflexive multi‑cloud — it is a measured, workload‑driven program of pilot → measurement → model → decision.

Conclusion
For many enterprises with heavy Microsoft investments, sustained GPU demand, and latency‑sensitive RAG workloads, the PT study provides a practical signal to prioritize an Azure pilot. However, any organization that contemplates consolidating AI workloads should validate the PT results against its own workloads, cost structure, and compliance requirements before making irreversible platform commitments. Run the pilot, instrument deeply, and include migration and exit costs in long‑range models — that is how the PT findings translate from press release to production decision.

Source: CBS 42 https://www.cbs42.com/business/press-releases/ein-presswire/850366910/pt-study-shows-that-using-a-single-cloud-approach-for-ai-on-microsoft-azure-can-deliver-benefits/
 

Principled Technologies’ new hands‑on evaluation argues that running a complete retrieval‑augmented generation (RAG) stack entirely on Microsoft Azure — instead of splitting model hosting, search and compute across multiple clouds — can produce measurable gains in latency, simplify governance, and yield more predictable multi‑year costs for many common enterprise AI workloads.

Isometric diagram of cloud infrastructure linking Azure and AWS.Background / Overview​

Principled Technologies (PT) built a canonical RAG application twice: once in a mixed, multi‑cloud topology (Azure OpenAI for model inference paired with AWS search/compute) and once as an all‑Azure deployment (Azure OpenAI + Azure AI Search + Azure GPU VMs and storage). PT reports substantial differences favoring the Azure‑only topology — headline numbers include roughly a 59.7% reduction in end‑to‑end execution time and up to an 88.8% reduction in search‑layer latency when Azure AI Search replaced Amazon Kendra in the tested scenario. PT frames these as outcomes of a specific test envelope and repeatedly warns readers that the numeric magnitudes depend on SKUs, region topology, dataset sizes, concurrency and discount assumptions.
Those are the claims; this feature breaks down what PT tested, why the mechanisms are plausible, which results are verifiable, and where the caveats and risks live for IT leaders weighing a single‑cloud Azure strategy for AI.

Why the PT experiment matters​

The test problem: RAG at scale​

Retrieval‑augmented generation (RAG) is now a mainstream production pattern: ingest documents, create embeddings, store vectors, retrieve relevant passages, and feed those to a large language model for synthesis. Latency and cost in RAG flows are shaped by two architectural facts:
  • Data gravity — large, frequently accessed corpora favor collocating compute near storage to avoid repeated egress and cross‑cloud network hops.
  • Tight coupling — retrieval, embedding, and inference are latency‑sensitive chains where extra round trips materially increase end‑to‑end response time.
PT’s experiment uses this canonical flow and compares two realistic deployment topologies to quantify the operational impact of collocation and integrated tooling.

The claim set (straightforward and provocative)​

PT summarizes four practical benefits for a single‑cloud Azure standard:
  • Operational simplicity — fewer control planes, less integration friction, fewer APIs to manage.
  • Lower end‑to‑end latency — collocation of vector search, storage, and model inference reduces round trips and network overhead.
  • More predictable TCO — consolidated billing and the ability to use committed discounts can improve multi‑year economics in sustained workloads.
  • Unified governance and compliance tooling — a single identity, monitoring and data governance plane simplifies auditing and policy enforcement.
Those points are intuitively and technically familiar to cloud architects; PT’s contribution is empirical data that quantifies the effects for a concrete RAG workload and SKU choices.

Technical foundations: what makes an all‑Azure stack faster?​

1) Collocation and data gravity​

When the vector store, search index, and model inference are co‑located in the same cloud region and provider, you remove cross‑provider network hops and the associated egress costs and latency. For RAG flows that perform frequent retrievals per query, this reduction in round trips compounds quickly and can materially reduce user‑perceived latency. PT measured exactly this effect in their tests.
Industry practitioners and analysts have long described data gravity as a decisive factor in placement decisions for data‑heavy workloads; collocating compute with large, hot datasets commonly yields better latency and lower egress charges.

2) Purpose‑built GPU VM families​

PT’s performance claims rest on using modern, AI‑optimized GPU VMs inside Azure. Microsoft documents purpose‑built GPU series for generative AI and large model inference — for example, ND‑class H200 (H200 Tensor Core) and NC/ND H100 offerings — that provide high‑bandwidth memory, NVLink and InfiniBand interconnects optimized for LLM workloads. These VM families materially affect inference throughput and latency, and using them inside the same cloud/region as the managed model and index is a plausible source of the measured gains.
Microsoft has explicitly promoted ND H200/NC H100 series for Generative AI inference and training; higher HBM and interconnect bandwidth reduce memory bottlenecks and inter‑GPU synchronization overheads, which can translate into lower latency for interactive applications.

3) Integrated managed services and fewer connectors​

Azure AI Search (formerly Azure Cognitive Search) is explicitly built to operate as a managed retrieval and vector store for RAG. It supports vector search, hybrid vector + keyword ranking, semantic ranking, connectors to Azure storage sources, and integration with Azure OpenAI — removing the need for custom connectors and reducing integration overhead. Amazon Kendra, AWS’s managed enterprise search, offers similar managed features for AWS environments, but cross‑provider setups can reintroduce connector complexity and network costs. PT’s measured search‑layer delta is consistent with this integration argument.

What PT actually measured (concise)​

  • Architecture: a canonical RAG flow (ingest → embeddings → index/search → model call → assembled answer).
  • Topologies: all‑Azure stack (Azure OpenAI + Azure AI Search + Azure GPU VMs + Azure storage) vs mixed deployment (Azure OpenAI model calls but search/index and compute hosted on AWS using Amazon Kendra and AWS compute/storage).
  • Metrics: end‑to‑end latency (user request → model response), search query latency, tokens per second throughput, and a modeled three‑year TCO under PT’s utilization and discount assumptions.
  • Headline reported deltas: ~59.7% faster end‑to‑end execution for Azure‑only vs mixed, and up to 88.8% faster search‑layer latency when Azure AI Search was used instead of Amazon Kendra in PT’s tests. PT stresses these numbers are scenario‑specific.

Independent verification and cross‑checks​

The plausibility of PT’s direction — consolidation reduces friction and can lower latency — is supported by public platform documentation and neutral cloud strategy guidance:
  • Microsoft’s own product docs and blog confirm Azure’s AI‑optimized GPU families and the purpose of Azure AI Search as a vector + semantic retrieval service for RAG. Those platform capabilities make the mechanisms PT reports (collocation, higher bandwidth GPUs, integrated search) technically credible.
  • Amazon Kendra’s product documentation outlines a managed retriever optimized for RAG and highlights features such as optimized passage chunking, ACL filtering and a managed retrieval API — capabilities that reduce the engineering burden when Kendra runs in an AWS‑native deployment. PT’s mixed topology used Kendra on AWS, so any extra latency measured would plausibly be due to cross‑cloud hops rather than Kendra’s raw capability.
  • Neutral practitioner guides and cloud strategy articles show the same trade‑offs PT highlights: single‑cloud simplifies operations and can unlock commercial discounts; multi‑cloud reduces vendor lock‑in and gives access to best‑of‑breed services at the cost of higher operational overhead. DigitalOcean and other independent publications lay out these tradeoffs succinctly.
Taken together, these independent sources corroborate PT’s directional findings even as they underline that the exact percentages reported are contingent on configuration and workload.

Critical analysis: strengths of the PT study​

Practical, hands‑on evidence — not just theory​

PT performed a live comparative experiment on a real RAG pipeline rather than modeling every variable abstractly. That practical approach gives operations teams a replicable starting point and a set of measurable metrics to compare against their own fleets.

Clear mechanistic reasoning​

PT’s conclusions rest on well‑understood software and networking phenomena: fewer network hops, no cross‑cloud egress, reduced connector complexity, and the use of high‑bandwidth GPU SKUs inside one provider. Those mechanisms make the results technically credible.

Actionable guidance for CIOs and SREs​

PT doesn’t issue a universal mandate; it provides an executive checklist and recommends piloting workloads, rebuilding TCO models with internal usage profiles, and instrumenting latency and throughput. That pragmatic stance helps teams convert PT’s findings into testable experiments rather than one‑way vendor commitments.

Where the PT study is limited — and what to watch for​

1) Configuration sensitivity — don’t generalize the percentages​

PT repeatedly notes its numbers are tied to the specific SKUs, regions and workload assumptions used in their tests. Small changes to GPU family, region pairings, dataset size, concurrency or negotiated pricing change the TCO and latency deltas materially. Treat the 59.7% and 88.8% figures as a test result tied to a specific envelope, not a universal law.

2) Vendor cooperation and the press‑release context​

PT’s reports are valuable but often produced and distributed via vendor PR channels; that distribution model means readers should apply extra scrutiny to modeling assumptions and confirm findings in their environment before making procurement changes. PT’s own materials encourage such re‑testing.

3) Portability, lock‑in, and exit costs​

A single‑cloud strategy that optimizes for latency and cost can increase vendor lock‑in risk. Migration and exit costs, data egress pricing changes, and proprietary service dependencies (APIs, managed connectors) should be included in any multi‑year TCO. PT’s models include many of these variables, but organizations must replace PT’s assumptions with their own negotiated prices and utilization numbers to get trustworthy answers.

4) Resilience and provider diversity​

Relying on one hyperscaler can concentrate risk: provider outages, regional disruptions, or sudden pricing changes could affect a centralized fleet. Multi‑cloud remains a valid design choice when resilience or best‑of‑breed functionality is critical. Neutral guidance emphasizes matching architecture to workload risk profiles rather than defaulting to one provider.

Practical validation playbook (for CIOs and SREs)​

Use PT’s study as a blueprint for a disciplined validation program rather than as a procurement instruction. A concise, repeatable checklist:
  • Inventory and classify workloads by data gravity, latency sensitivity, and compliance needs.
  • Rebuild PT’s three‑year TCO model using internal metrics: GPU hours (training + inference), storage, IOPS, egress, committed discount levels, and one‑time migration costs.
  • Pilot one production‑adjacent RAG workload in an all‑Azure configuration that matches PT’s topology (Azure OpenAI + Azure AI Search + Azure GPU VM SKU). Measure: end‑to‑end latency, search latency, tokens/sec, and DevOps time spent on integration.
  • Run sensitivity tests: vary utilization (±20–50%), simulate egress spikes, and remove committed discounts to see where single‑cloud economics break.
  • Harden governance and policy‑as‑code from day one: identity controls, data lineage, and automated export/migration runbooks to reduce exit friction.
  • Decide by workload: collocate high‑data‑gravity, latency‑sensitive services; keep less critical or sovereignty‑sensitive workloads portable.
This sequence preserves operational flexibility while letting teams capture the low‑friction wins PT identifies.

Cost modeling: why committed use and utilization matter​

PT’s TCO outcomes lean on two commercial levers:
  • Committed/volume discounts — signing ahead for sustained GPU hours and cloud spend can substantially reduce unit economics.
  • Sustained utilization — sustained high GPU utilization amortizes fixed infrastructure costs and makes single‑cloud economics more attractive.
However, both levers are double‑edged. If utilization drops or committed discounts are lost, TCO advantage can evaporate quickly. Any modeled three‑year ROI must include stress scenarios where utilization dips or pricing tiers change unexpectedly. PT’s report acknowledges this and frames its TCO as assumption‑driven.

The governance and compliance angle​

Consolidating identity, audit, and monitoring tools within Azure (for example, using Microsoft Entra, Purview and Defender) can reduce the operational overhead of compliance programs and streamline evidence collection for regulated workloads. That benefit is real when organizations can accept the provider’s compliance posture and region coverage. For workloads requiring strict jurisdictional controls, Azure hybrid offerings (Azure Arc, Azure Local) may be complementary rather than substitutive. PT cites these hybrid options as mitigations when full cloud migration is impossible.

Bottom line: a pragmatic endorsement with guardrails​

Principled Technologies’ study provides a practical, testable argument that single‑cloud Azure deployments can reduce operational friction, lower end‑to‑end latency through collocated storage and GPU compute, centralize governance and — under the right utilization and commercial terms — produce attractive multi‑year TCO. The mechanics PT measured are credible and supported by Microsoft’s product capabilities (AI‑optimized GPU SKUs and integrated retrieval services) and by neutral cloud strategy guidance that explains the single‑ vs multi‑cloud trade‑offs.
However, the critical caveat is unavoidable: PT’s headline numbers are scenario‑specific. They are test‑envelope outcomes that require replication against each organization’s real workloads, negotiated pricing, and regulatory constraints. Treat PT’s results as a usable blueprint: pilot, instrument, re‑model with internal data, and harden exit/migration playbooks before committing to large or irreversible spending.

Final recommendations for IT decision makers​

  • Use PT’s experiment to prioritize one or two high‑value, latency‑sensitive RAG workloads for an Azure pilot. Instrument thoroughly and compare observed deltas against PT’s reported numbers.
  • Rebuild any TCO and ROI calculations with internal utilization profiles and negotiated vendor terms; include stress tests for utilization drops and lost discounts.
  • Preserve portability for workloads where vendor‑diversity is a business requirement; implement policy‑as‑code and tested export flows to reduce lock‑in risk.
  • Match placement decisions to workload characteristics: collocate high‑data‑gravity, latency‑sensitive pipelines; keep multi‑cloud or hybrid options for resilience, sovereignty, or niche service needs.
Principled Technologies’ report adds empirical fuel to a longstanding engineering intuition: when latency, integrated tooling and sustained utilization matter, a single‑cloud consolidated approach often wins on simplicity and cost — but the devil is in the assumptions. Validate, instrument, and protect your escape hatch before you standardize on any single‑vendor topology.
Conclusion
Principled Technologies’ hands‑on study is a practical primer for CIOs and SREs who are deciding whether to consolidate AI workloads on Azure. The study’s directionally believable mechanisms — data gravity, collocation, modern GPU SKUs, and integrated managed services — align with platform documentation and neutral practitioner advice. The precise savings and latency improvements reported are testable hypotheses rather than universal guarantees: run pilots, rebuild TCO models with internal data, and make workload‑level placement decisions that balance speed, cost, compliance and resilience.

Source: WTAJ https://www.wtaj.com/business/press-releases/ein-presswire/850366910/pt-study-shows-that-using-a-single-cloud-approach-for-ai-on-microsoft-azure-can-deliver-benefits/
 

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