Discover Simreka’s cloud and on-prem AI deployment options.
In an era where data breaches cost pharmaceutical companies an average of over $5 million per incident—ranking as the third most expensive of any industry in 2022—R&D organizations face a critical dilemma. How can you leverage the transformative power of AI for materials discovery and formulation development while maintaining ironclad security over your most valuable asset: proprietary research data?
The answer isn’t choosing between innovation and security—it’s choosing the right deployment architecture for your specific needs. Simreka’s flexible deployment options transform this either-or decision into a strategic advantage, enabling organizations to deploy AI-powered R&D capabilities exactly where they need them: in the cloud, on-premises, or in a hybrid configuration that delivers the best of both worlds.
The Data Security Imperative in R&D
For organizations developing next-generation materials, formulations, and chemical products, data isn’t just sensitive—it’s the foundation of competitive advantage. Every experimental result, every successful formulation, every materials property measurement represents intellectual property that could be worth millions or even billions of dollars.
The stakes are staggering. According to industry research, the annual cost of pharmaceutical IP leaks and the resulting production of counterfeit products has been estimated to be around 4% of the pharma industry’s annual revenue. A single misconfigured cloud storage bucket can expose years of proprietary research—as Pfizer discovered in 2020 when researchers found a publicly exposed Google Cloud Storage bucket containing drug safety information.
Yet despite these risks, R&D organizations cannot afford to ignore AI. The competitive pressure is too intense, and the potential benefits too substantial. The question becomes: how do you deploy AI securely?
Why Data Sovereignty Matters More Than Ever
Data sovereignty—the concept that data is subject to the laws and regulations of the country in which it resides—has evolved from a legal footnote to a strategic imperative. As industry experts note, “data sovereignty is no longer a legal footnote but a strategic concern for AI-driven enterprises, as businesses realize that data isn’t just a resource but a regulated asset.”
The regulatory landscape grows more complex every year. GDPR in Europe, China’s PIPL, India’s DPDPA, and numerous sector-specific regulations create a patchwork of requirements that vary by jurisdiction. For pharmaceutical and chemical companies, regulations like FDA 21 CFR Part 11, HIPAA, and regional data protection laws add additional layers of compliance requirements.
The challenge is particularly acute for multinational R&D organizations. As Equinix research highlights, “countries are imposing restrictions on cross-border data flows,” meaning that data generated in one country may legally need to remain within that country’s borders—even as AI models trained in the cloud may reside elsewhere.
The Security-Innovation Paradox
A Deloitte survey reveals a sobering truth: 55% of enterprises avoid at least some AI use cases due to data security concerns, while an IBM industry survey finds that 57% cite data privacy as the biggest inhibitor to AI adoption.
This creates what we call the security-innovation paradox: organizations need AI to remain competitive, but security concerns prevent them from deploying it. The traditional approach—pure cloud deployment—offers speed and scalability but raises legitimate concerns about data exposure, regulatory compliance, and loss of control. Pure on-premises deployment offers maximum security but can limit scalability and increase infrastructure costs.
The solution? Deployment flexibility that matches security requirements to specific workloads and data sensitivity levels.
Simreka’s Three Deployment Models: Matching Architecture to Requirements
Simreka recognizes that different organizations—and even different projects within the same organization—have vastly different security, performance, and cost requirements. That’s why the platform offers three distinct deployment options, each optimized for specific scenarios.
| Deployment Model | Data Location | Compute Resources | Best For | Key Security Features |
|---|---|---|---|---|
| Cloud Deployment | Cloud-hosted with encryption | Elastic cloud scaling | Organizations prioritizing speed and collaboration | SOC 2 compliance, encryption at rest and in transit, role-based access control |
| On-Premises Deployment | Organization’s data center | Dedicated on-site infrastructure | Maximum data sovereignty and air-gapped security | Complete data isolation, zero external data transfer, custom security protocols |
| Hybrid Deployment | Critical data on-premises, non-sensitive in cloud | Distributed across on-prem and cloud | Organizations balancing security with scalability | Workload-specific security policies, encrypted secure tunnels, federated data access |
Cloud Deployment: Speed and Collaboration Without Compromise
For organizations where speed-to-market and multi-site collaboration outweigh data residency concerns, Simreka’s cloud deployment offers immediate access to AI-powered R&D capabilities with enterprise-grade security.
When Cloud Deployment Makes Sense
- Distributed research teams: Multiple sites collaborating on the same projects
- Rapid scaling needs: Variable computational demands requiring elastic resources
- Lower capital expenditure: Avoiding upfront infrastructure investments
- Non-regulated industries: Organizations without strict data residency requirements
With over 83% of pharma companies using public, hybrid, or private cloud environments between 2021 and 2022, cloud adoption in highly regulated industries is no longer theoretical—it’s proven and validated.
Security Features of Simreka’s Cloud Deployment
Cloud deployment doesn’t mean compromising on security. Simreka’s cloud infrastructure implements:
- End-to-end encryption (AES-256) for data at rest and in transit
- Identity and Access Management (IAM) with role-based access control
- Multi-factor authentication for all user accounts
- Comprehensive audit trails for compliance and monitoring
- Regular security assessments and penetration testing
- Data segregation ensuring customer data isolation
On-Premises Deployment: Maximum Control for Maximum Security
For organizations operating under strict data sovereignty requirements, developing classified materials, or handling exceptionally sensitive formulations, on-premises deployment offers complete control over data, infrastructure, and security protocols.
When On-Premises Deployment is Essential
- Regulatory requirements: ITAR, EAR, or other regulations prohibiting cloud storage
- Air-gapped security: Research requiring complete network isolation
- Data sovereignty mandates: Legal requirements to keep data within specific geographic boundaries
- Proprietary formulations: Trade secrets requiring maximum protection
- Defense and aerospace: Classified or sensitive materials development
As recent industry analysis shows, “most AI-powered software solutions require transmitting customer data to external large language models hosted by major tech companies, creating compliance risks and IP exposure that many organizations are no longer willing to accept.” On-premises deployment eliminates this risk entirely.
How Simreka’s On-Premises Deployment Works
Simreka’s on-premises deployment brings the complete AI-powered R&D platform into your data center:
- Complete platform installation: All modules including Virtual Experiment Platform, MatIQ, and Formulation Generator
- Local data processing: All computation occurs within your infrastructure—zero external data transfer
- Custom security integration: Works with your existing authentication, encryption, and monitoring systems
- Air-gapped operation: Can operate completely disconnected from the internet if required
- Regular updates: Security patches and feature updates delivered via secure channels
Hybrid Deployment: The Best of Both Worlds
For many organizations, the optimal solution combines on-premises security for sensitive data with cloud scalability for computational tasks. Industry research confirms that “hybrid cloud dominates the pharmaceutical market by balancing security, scalability, and cost efficiency.”
How Simreka’s Hybrid Architecture Works
Hybrid deployment leverages Simreka’s intelligent workload distribution:
- Sensitive data stays on-premises: Proprietary formulations, experimental results, and trade secrets remain in your data center
- Computations leverage cloud resources: AI model training and intensive simulations use elastic cloud resources
- Secure data tunnels: Encrypted connections ensure safe communication between environments
- Federated data access: Simreka’s Databank can query both on-premises proprietary data and cloud-based material property databases
Real-World Hybrid Use Case
Consider a cosmetics manufacturer developing a new proprietary formulation:
- Proprietary ingredient databases and existing formulations remain on-premises
- Simreka’s AI-Powered Formulation Generator accesses cloud-based AI models for suggestions
- Generated formulation candidates are validated against on-premises safety and regulatory databases
- Virtual simulations predict properties using cloud compute while keeping formulation details secure
- Final formulations and test results are stored exclusively on-premises
This approach delivers rapid AI-powered innovation without ever exposing proprietary formulation data to cloud storage.
Making the Right Deployment Choice
Selecting the optimal deployment model depends on multiple factors specific to your organization:
| Decision Factor | Cloud Deployment | On-Premises Deployment | Hybrid Deployment |
|---|---|---|---|
| Data Sensitivity | Moderate | Extremely High | Variable by workload |
| Regulatory Requirements | Standard compliance (SOC 2, ISO 27001) | Strict sovereignty or classified requirements | Mixed requirements |
| Collaboration Needs | Multi-site, global teams | Single-site or controlled access | Flexible collaboration models |
| Capital Investment | Minimal (OpEx model) | Significant upfront CapEx | Moderate CapEx + OpEx |
| Scalability Needs | Highly variable | Predictable, steady-state | Burst capacity in cloud |
| Implementation Timeline | Days to weeks | Weeks to months | Weeks to months |
Simreka’s Deployment Flexibility in Action
Regardless of which deployment model you choose, Simreka delivers consistent functionality across all environments:
Virtual Experiment Platform
Simreka’s Virtual Experiment Platform provides forward simulation, reverse simulation, and data exploration capabilities in cloud, on-premises, or hybrid configurations. Run thousands of virtual experiments to optimize formulations and predict material properties—wherever your data needs to reside.
MatIQ – The AI Co-Pilot
Simreka’s MatIQ – the AI Co-Pilot for Material Innovation brings generative AI directly to your R&D workflows. Whether deployed in the cloud or on-premises, MatIQ’s suite of tools—MatQuest, DocTalk, ImageXP, and DataDive—accelerates research while respecting your data security requirements.
AI-Powered Formulation Generator
The Formulation Generator leverages AI to suggest optimized formulations based on your requirements and constraints. In hybrid deployments, proprietary ingredient databases remain on-premises while AI models in the cloud generate suggestions—combining security with innovation.
Databank Integration
Simreka’s Databank – the World’s Largest Material Informatics Platform integrates seamlessly across all deployment models. Access 150+ million material property records while maintaining complete control over your proprietary experimental data.
Security Best Practices Across All Deployment Models
Regardless of deployment choice, Simreka implements security best practices including:
- Zero Trust Architecture: Access granted only on a need-to-know basis with continuous verification
- Data encryption: AES-256 encryption for data at rest and in transit across all environments
- Comprehensive audit logging: Complete visibility into data access and system usage
- Regular security assessments: Continuous monitoring and vulnerability testing
- Compliance certifications: Alignment with industry standards and regulatory requirements
Conclusion
In the age of AI-powered R&D, security and innovation are not opposing forces—they’re complementary requirements that demand thoughtful infrastructure decisions. The choice between cloud, on-premises, and hybrid deployment isn’t about selecting the “best” option in abstract terms; it’s about choosing the right architecture for your specific security requirements, regulatory context, and business objectives.
Simreka’s flexible deployment options ensure that you never have to choose between leveraging cutting-edge AI capabilities and maintaining the security posture your organization demands. Whether you need cloud agility, on-premises control, or hybrid optimization, Simreka delivers consistent, powerful AI-driven R&D capabilities tailored to your deployment preferences.
As data sovereignty regulations multiply and IP protection becomes increasingly critical, the organizations that thrive will be those that deploy AI strategically—matching security architecture to data sensitivity while maintaining the innovation velocity that competitive markets demand.
Frequently Asked Questions
Q1. Can we start with cloud deployment and migrate to on-premises later?
Yes, Simreka’s architecture supports migration between deployment models. Organizations often start with cloud deployment for rapid implementation and then transition to on-premises or hybrid models as their security requirements evolve or as they develop more sensitive proprietary data. The platform’s consistent interface and data formats facilitate smooth migrations.
Q2. How does Simreka ensure data security in cloud deployments?
Simreka implements multiple layers of security including AES-256 encryption for data at rest and in transit, role-based access control with multi-factor authentication, comprehensive audit logging, SOC 2 compliance, regular penetration testing, and data segregation to ensure complete isolation between customer environments. All cloud infrastructure follows security best practices from leading providers.
Q3. What are the infrastructure requirements for on-premises deployment?
On-premises deployment requirements vary based on the specific modules and expected usage volume. Typical deployments of Simreka’s Virtual Experiment Platform require dedicated servers with sufficient compute resources, storage capacity for datasets and models, and network infrastructure. Simreka’s team works closely with your IT department during the planning phase to ensure infrastructure meets performance and security requirements.
Q4. How does hybrid deployment handle data transfer between on-premises and cloud?
Simreka’s hybrid deployments use encrypted secure tunnels (such as VPN or dedicated connections) to transfer data between on-premises and cloud environments. Organizations maintain granular control over which data types can be transferred, with sensitive proprietary data remaining on-premises while computational results and non-sensitive information flow through secure channels. All transfers are logged for audit purposes.
Q5. Does Simreka support deployment in specific geographic regions for data sovereignty?
Yes, Simreka’s Databank and platform support regional cloud deployments to meet data sovereignty requirements. Organizations can specify the geographic region where their cloud-hosted data and compute resources should reside, ensuring compliance with GDPR, PIPL, DPDPA, and other regional data protection regulations. On-premises deployments inherently provide complete control over data location.
Q6. How long does it take to implement each deployment model?
Cloud deployments typically take days to weeks depending on data migration and user onboarding requirements. On-premises deployments generally require weeks to months for infrastructure setup, installation, security integration, and testing. Hybrid deployments fall in the middle range, with timelines varying based on the complexity of the hybrid architecture and integration requirements — request a Simreka demo for a tailored deployment plan.
Bibliographical Sources
- Cyera (2022). ‘Data Security for Pharma Companies: Safeguarding R&D and IP Data.’ Available at: https://www.cyera.com/blog/data-security-for-pharma-companies-safeguarding-r-d-and-ip-data
- Exasol (2024). ‘Data Sovereignty and AI: What Every Leader Needs to Know.’ Available at: https://www.exasol.com/blog/data-sovereignty-ai/
- Equinix (2025). ‘Data Sovereignty and AI: Why You Need Distributed Infrastructure.’ Available at: https://blog.equinix.com/blog/2025/05/14/data-sovereignty-and-ai-why-you-need-distributed-infrastructure/
- Medium (2024). ‘Securing AI workloads in the Cloud and On-prem.’ Available at: https://medium.com/@cloudwithusama/securing-ai-workloads-in-the-cloud-and-on-prem-53f8d36dc647
- Straits Research (2024). ‘Cloud Computing in Pharmaceutical Market Size, Trends & Demand by 2033.’ Available at: https://straitsresearch.com/report/cloud-computing-in-pharmaceutical-industry-market
- PR Newswire (2024). ‘Data Sovereignty Revolution: How Enterprises Are Choosing On-Premises Solutions Over Cloud-Connected AI Models.’ Available at: https://www.prnewswire.com/news-releases/data-sovereignty-revolution-how-enterprises-are-choosing-on-premises-solutions-over-cloud-connected-ai-models-302545170.html
Choose the Deployment Model That’s Right for You
Ready to explore how Simreka’s flexible deployment options can accelerate your R&D while meeting your security and compliance requirements? Request a personalized demo to discuss your specific deployment needs →