Dedicated servers are making a strong comeback as organizations increasingly rely on them to meet performance and compliance requirements, according to new research from Liquid Web. The survey of over 1,000 IT professionals revealed that 86% of organizations currently use dedicated servers, with notable adoption in government, information technology, and finance sectors. The trend is also evident among smaller businesses, with 68% of micro companies reporting usage. Furthermore, 34% of respondents increased their spending on dedicated servers in 2024, indicating a shift back from public cloud environments. IT professionals cite full control and customization as primary reasons for choosing dedicated infrastructure, with over half considering dedicated servers essential for their operations.
Proton, the company known for its encrypted email service Proton Mail, has launched a new privacy-focused artificial intelligence chatbot named Lumo. This chatbot aims to enhance user privacy by storing data locally on devices and employing “zero-access” encryption, which ensures that only users have access to their information, preventing third parties, including Proton, from viewing it. Lumo offers various functionalities, including summarizing documents, generating code, and composing emails. It operates using multiple open-source language models hosted on Proton’s servers in Europe. Users can link their Proton Drive files to the chatbot, which maintains end-to-end encryption. Proton’s CEO, Andy Yen, emphasized that their vision for Lumo is to prioritize user privacy over profit, contrasting it with offerings from larger tech companies that often exploit user data for commercial gain.
Why do we care?
Liquid Web wants us to believe dedicated servers are back in a big way—86% adoption, more spending. But let’s be real: this isn’t cloud’s demise. It’s smart workload placement. Some stuff’s just better off on dedicated gear for cost, control, or compliance. For MSPs, this is about helping customers pick the right horse—not betting it all on racks again. Hybrid infrastructure is a real trend, and ensure it’s about right tool for the right job.
Now Proton’s Lumo—that’s intriguing. A privacy-first AI chatbot with zero-access encryption and local storage. As LLMs turn into commodities, privacy and sovereignty could be real differentiators. If you’re advising clients in regulated industries, there’s your wedge. Remember, the game isn’t the model anymore—it’s the trust you wrap around it.