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Guide

Hosted vs local

The biggest practical decision isn't which agent — it's where it runs and where your data goes. For a Swiss business handling client data, this question usually decides the rest.

6 min read

The two models

Local (self-hosted)Hosted / cloud SaaS
Data locationStays on your hardwareProcessed on a vendor's servers
SetupYou install & maintain itZero setup, vendor runs it
CostFree software; you pay model/API usageSubscription + usage
ControlFull control, inspectable, extensibleLimited to vendor features
Privacy / DSGEasier to keep client data closeDepends on vendor & data-processing terms
Best forSensitive data, tinkerers, long-term controlSpeed, no maintenance, teams without IT

Both OpenClaw and Hermes are local-first by design — you run the agent on your own machine or server. That's a natural fit for Swiss businesses that want client data to stay under their control.

Where your data actually goes

Under the Swiss Data Protection Act (DSG/nDSG), client data must be handled carefully — which is why a notary, doctor, fiduciary or anyone holding sensitive information should think about this before adopting an agent.

  • The agent itself (the harness that reads your inbox and calls tools) runs on hardware you control.
  • The model (the reasoning brain) usually runs in a vendor's cloud — unless you deliberately run a local model.
  • Your memory and skills (what the agent has learned about you) live on your own machine.

So "local" can mean two things: a local agent (common, easy) or a local model (more work, but nothing sensitive leaves your premises).

What about the model itself?

Even a local agent usually calls a hosted model (like Claude or GPT) over an API. If you want the reasoning local too, you can run an open-weight model on your own hardware — Hermes supports local models natively, and OpenClaw has community adaptations for models like DeepSeek.

A practical note: local is powerful, not mandatory. The sweet spot for many small teams is a self-hosted agent wired to a reputable hosted model, with sensitive documents handled through local tools or models where required. It's a dial, not a switch — and a good setup conversation is the fastest way to find the right setting for your business.