kvrun vs self-hosting vLLM on your own GPUs

· 4 min read · kvrun team

For many teams the real alternative to a managed inference service is not another vendor. It is “we’ll run vLLM ourselves.” That is a reasonable plan. vLLM is a capable, widely used serving engine, and owning the stack gives you control. This page sets out what self-hosting really costs, what you would have to build for encryption, isolation and erasure, and when self-hosting is the right call.

What self-hosting gives you

  • Full control of the model, the serving configuration and the hardware.
  • No provider in the path. Your requests stay on machines you run.
  • Predictable spend once the GPUs are bought or reserved, if utilisation stays high.

Total cost of ownership

The cost of self-hosting is more than GPUs. Three lines matter most, and teams often underestimate the last two.

CostWhat it includesHow teams miscount it
GPUsPurchase or reserved hire, plus networking, storage and power or colocationCounted at list price, with no spare capacity for failover or peaks
Engineering timeSetting up serving, scaling, upgrades, model rollouts, benchmarking and incident fixesTreated as a one-off project, when it is ongoing
On-callSomeone responsible at 3 a.m. when a node fails or latency spikesAssumed to be covered by existing staff, with no rota or runbooks

Utilisation decides the economics. A GPU that sits idle at 20% is expensive per token however cheap the hardware looks on paper. A useful test: write down the GPU count you need at peak, add headroom for one node failing, then price the engineering and on-call hours each month. Compare that total with managed hours at your real volume, not your forecast.

What you would have to build for governance

vLLM is a serving engine. It is not a governance layer, and the controls that buyers ask for are not in the box. If you self-host, you will own each of these:

ControlWhat you buildWhy it is hard
Encryption of the KV cacheSealing cached blocks at rest and in every offload tier, with key managementThe cache is in GPU memory and moves between tiers, so encryption must hold on the hot path
Tenant isolationSeparate keys, cache and placement per customer, and no prefix sharing across tenantsPrefix caching is a performance feature, so turning it off or partitioning it costs throughput
ErasureA way to delete a session's data from every tier, and evidence that it happenedOverwriting does not reliably remove every copy, so you need key-based erasure and a certificate
Audit evidenceAn append-only log of allocation, access and deletion, exportable for an auditorLogs must be complete and tamper-evident, which is a design task, not a dashboard
ResidencyPolicy that keeps compute and storage in the UKEvery replica, cache tier and backup needs checking, not just the primary region

Each of these is solvable. The question is whether your team should spend months building and maintaining them, rather than the product your customers are paying for.

When self-hosting wins

Self-hosting is the right call in some cases, and it is worth saying so plainly:

  • Large, stable, high-utilisation workloads on one or two models, where GPUs stay busy and the cost per token is hard to beat.
  • An in-house MLOps team that already runs production GPU infrastructure, with on-call and runbooks in place.
  • Strict requirements to own the hardware, for example air-gapped environments or on-premises rules.
  • Custom serving work that a managed service does not support, such as unusual kernels or architectures.

When managed governed inference wins

  • You want open models on dedicated GPUs without building the platform underneath them.
  • You need encryption, isolation, erasure and audit evidence on day one, with a certificate you can show a regulator.
  • Your volume is growing or uneven, and you do not want to carry idle GPUs.
  • Your team is small, and the engineering hours are better spent on your product.

kvrun runs open models on dedicated GPUs in London behind a governed KV cache, with an OpenAI-compatible API. You keep the model choice and the endpoint shape, and you do not run the serving stack, the isolation layer or the erasure process yourself.

How to decide

  1. Write down your peak GPU count, headroom and utilisation for the next 12 months.
  2. Price GPUs, engineering hours and on-call for self-hosting, honestly.
  3. List the governance controls your buyers and regulators require, and cost each one as a build.
  4. Run a pilot on both, using your own prompts, and compare cost and time to a production-ready system.

Questions

Is vLLM secure enough for regulated data?
vLLM is a serving engine. Security for regulated data depends on the controls around it: encryption, isolation, erasure, residency and logging. Those are yours to build and prove if you self-host.
Can I move from self-hosting to managed later?
Yes, if you keep the API shape and model choice portable. An OpenAI-compatible endpoint makes that move simpler.
What if I only need a few GPU hours a month?
Managed inference is usually cheaper at low volume, because you are not paying for idle capacity or the engineering to keep it running.